ICMIND MBA CASE STUDY SOLUTIONS – Hotel Valuation Services (HVS) was founded in1980 by Steve Rushmore. It is the world’s leading consulting and services organization focused on the hltel, restaurant

ICMIND MBA CASE STUDY SOLUTIONS – Hotel Valuation Services (HVS) was founded in1980 by Steve Rushmore. It is the world’s leading consulting and services organization focused on the hltel, restaurant

ICMIND MBA CASE STUDY SOLUTIONS – Hotel Valuation Services (HVS) was founded in1980 by Steve Rushmore. It is the world’s leading consulting and services organization focused on the hltel, restaurant

 

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Total Quality Management

 

 
CASE 01: TPM AT MRC BEARINGS
CASE 02: Customer Relationship Management at Bharti
CASE 03: Hotel Valuation Services ( HVS )
CASE 04: IMPLEMENTING QUALITY MANAGEMENT SYSTEM AT HYUNDAI MOTORS
CASE 05: Supplier Quality Audit at Tata Motors
CASE 01: TPM AT MRC BEARINGS
MRC Bearing, the largest producer of aero-engine bearings in the world, is located in Falconer, New York.  The company is the primary aerospace bearings supplier to General Electric, Pratt—Whitney and Rolls Royce, as well as to the world’s leading military and helicopter programmes Problem Identification.
In 1996, the company realized that it was behind on orders.  Their customers were aggressive in their demands for cost reductions and shorter lead times.  The majority of their maintenance hours were dedicated to emergency work orders.  The company decided to implement a TPM programme in order to achieve a turnaround.  After the implementation of TPM, the company was able to achieve a 98 per cent decrease in unplanned maintenance hours.
TPM Journey
The company started its TPM programme by focusing on a small area, which was critical to processes but was experiencing chronic problems.  At first, a lot of people were skeptical and not really interested in getting involved with the TPM activities.  The company had a core team of people who were excited about TPM.  It also enlisted the help of people outside the organization to work with the core team
TPM at MRC began with a weeklong TPM event. It startd by cleaning, insecting lubricating and performing corrective work on a piece of machinery. Once a machine was cleaned, it would be painted.  At first, people were reluctant to participate in TPM events and ridiculed the TPM programme as “Totally Painted Machines.”  As time elapsed, people started appreciating the improvements brought about by TPM events.  Employees who were totally against TPM started participating in TPM workouts.
MRC  formed equipment improvement teams (EITs) to work on resolving equipment – related issues.  The team initially worked on a piece of equipment with chronic problems.  The equipment was breaking down on a monthly basis and required three or four days each time to fix it.  The team discovered  the original manufacturer had used a sub-spec coupling on a drive unit.  The problem was solved by upgrading to the proper coupling.  The problem was solved by taking the time out to find the root cause of the failures, rather than just fixing the symptoms.  In the years following this repair, the problem was completely eliminated.  That success showed a lot of people in the company that TPM can make everyone’s duly life easier as well as improve productivity.
After the initial success, MRC expanded their TPM efforts to their second facility.  They created a  TPM Steering Committee at their second site and also created  a policy group to co-ordinate the efforts  of both facilities.  MRC trained 10 TPM Area Co-ordinators who undertake TPM activities for one week in each month.  These TPM Co-ordinators organize TPM events in their areas, also lead EITs and make sure the process keeps working.  MRC has begun to create full-time TPM teams.  One such team was able to correct a long-standing equipment problem.  This resulted in reducing the scrap produced by that equipment to almost zero.  The areas that MRCD focused on were.
  1. Preventive maintenance
  2. Putting predictive maintenance process in place (I.e. vibration analysis equipment)
  3. Cleaning the machines, resulting in inspection
  4. Creating standards on the equipment for cleaning, lubrication and daily checks
  5. Collecting data on downtime
  6. Creating equipment improvement teams
  7. Creating TPM area co-coordinators
Lessons Learnt
The most important lesson learnt was that training is the key to being successful with TPM.  The company has organized some initial TPM awareness training programmes for the organization for both operators and mechanics.  However, looking back they could have had achieved success faster if more training had been imparted.  The support of the top management, the union, the hard work of the people at MRC and the support of their customers were the factors instrumental to the success of the TPM initiative.
QUESTIONS:
  1. What were the problems faced by MRC?
  2. What was the solution used to address the problems at MRC?
  3. What were the attributes responsible for the successful implementation of TPM at MRC?
  4. Explain the TPM journey at MRC.
  5. Comment on the statement “TPM is not totally painted machines but taking pride in our machines.”
CASE 02: Customer Relationship Management at Bharti
Bharti Tele-ventures is one of India’s leading private sector telecom operators. Its cellular business, Airtel, is a leading mobile telephony brand. Like any telecom organization, Bharti considers information technology as a key business enabler.  According to Amrita Gangotra, vice – president of Information Technology at Bharti, IT works as a support system as well as a key business driver
The company has a wide area network (WAN) in place with a mix of leased lines and E1 and E3 lines.  The company extends different applications to its dealers and partners through its extranet.  The company also has procured a range of high-end servers from Sun and HP.  The company also has a strong area network (SAN) in place because its daily storage requirements are in tetra bytes. The main data centre is located in Gurgaon, Haryana; Bharti has procured billing, fraud management, revenue assurance and data warehousing software.
The Case for CRM
During the initial stages of its operations, the company’s systems were run manually.  Only 40 per cent of customer issues were getting resolved. The company decided to equip itself with tools that would help in resolving 90 percent of its customer issues.  The company decided to opt for a CRM solution to manage customer expectations and provide them with innovative products and services.
Oracle CRM Platform
Bharti wanted to fulfill its vision of providing the same quality of services anywhere and at any time. The company was particular that its customers should get the same quality of service no matter which of its call centers he or she contacts.  It evaluated many options before choosing its centralized CRM tool.  The factors considered were proper workflow automation, facilitation of knowledge sharing and integration with the billing system. After a thorough evaluation exercise, it decided to go ahead with the Oracle CRM platform.
Rolling out
After the company started its operations in Delhi, it acquired many circles and sought new licenses in other circles.  The CRM tool was implemented immediately whenever it obtained a new license.  However, the company had to put in place a phased migration strategy in the acquired circles, which had an existing subscriber base.  The migration had to be done in such a manner that the existing customer base did not suffer.  The migration was completed in a phased manner by the first quarter of 2004. The biggest challenge for Bharti was to have a unified process in lace.  They also faced the challenge of imparting training.  The company was successfully able to overcome to technical difficulties that it faced during implementation.
The CRM strategy at Bharti revolves around two aspects—operational CRM and analytical CRM. Operational CRM revolves around improving the workflow of call centres and helping them in their day-to-day activities.  Analytical CRM provides staff with the required information on customers and is used for business development
The company has successfully used its CRM solution to provide products tailor-made to the needs of its customers.  Thus, customers receive more value for money.  Customers now have access to different schemes and services depending on airtime usage.  Bharti has also managed to segregate its workflow with the help of the CRM tool.
QUESTIONS:
  1. Why did Bharti Tele-ventures opt for a CRM solution?
  2. What were the challenges faced by Bharti in its CRM implementation process?
  3. Discuss the strategy used by the company for implementing CRM and why.
  4. Explain the various benefit received by Bharti after implementing CRM.
CASE 03: Hotel Valuation Services ( HVS )
Hotel Valuation Services (HVS) was founded in1980 by Steve Rushmore.  It is the world’s leading consulting and services organization focused on the hltel, restaurant, shared ownership, gaming and leisure industries.  Rushmore began his career as a consultant ion the hospitality division of a prominent New York City real estate firm.  He quickly realized that a limited body of knowledge was available to assess the value of hotels.  He founded HVS to fill this perceived gap.
The HVS method of providing an economic study and appraisal for hotels and motels immediately became the industry standard.  HVS is focused on the hotel, restaurant, timeshare, gaming and leisure industries.  The company has more than 300 consultants offering specialized services through its network of 25 offices worldwide.
Studies conducted by HVS indicate that 2010 is going to be a challenging year for the Indian hospitality industry.
Challenges for the Hospitality Sector
The tourism industry is highly susceptible to changes in the macro-environment.  The aviation and hospitality sectors are among the first to get affected by an adverse environment and also the last to recuperate.
The main challenges faced by the hospitality sector in India include lack of infrastructure and facilities, lack of human resources and training, the hotel rating system not being at par with international standards, intense competition from global players and multiplicity of taxes.
HVS Recommendations
HVS has made the following recommendation in order to address the challenges faced by the hotel industry.
  • Grant hotels industry status across India
  • Include tourism as a subject in the Concurrent List of the Constitution of India
  • Grant hotels infrastructure status under Sec 80-IA of IT Act
  • Impose a single uniform luxury tax, based on the actual room tariff only, across all Indian sates
  • Impose uniform tax rates on rooms, food and beverages, and liquor across the country
  • Give incentives, in the form of tax breaks, to re-invested capital in the hotel industry
  • Extend the benefits of Sec 80-ID to other parts of India
  • Develop a more scientific rating system to truly benchmark hotel quality
Hotel Rating Process
Various approaches are used across the globe to classify hotels.  The most common approaches followed are;
Registration:  This involves basic  level listing of properties that meet agreed minimum standards.
Classification: Hotels are classified into various categories based on the amenities offered. All establishments have to follow certain minimum standards.
Grading: Hotels are graded according to the quality of services delivered to customers. Assessment of this nature is highly complex and time consuming.
Hotel Rating System in India: India has been using the “Classification” system with mixed results for over four decades; HVS recommends that the present rating system in India should be upgraded to the “Grading” system to enable it to employ a more discretionary approach to the process.  Hotels, motels and other lodging in India are inspected and categorized according to their products and services by the Hotel and Restaurant Approval and Classification Committee (HRACC), a body instituted by the Ministry of Tourism. However, the checklist used by HRACC has some serious shortcomings.  The minimum standards are too weak and lenient.  Hotels that do not adhere to minimum standards are penalized.  However, benefits are not offered to hotels that offer services above the minimum standards.  The checklist focuses on physical infrastructure alone and is not very effective in assessing the quality of services.
The present system needs a complete overhaul in order to remain relevant in the dynamic market scenario.  Safety and hygiene should be the first parameters in the classification process.  The government should focus on the safety and hygiene parameters than on the commercial aspects of classification.  The HRACC classification should be revamped so that it provides a more accurate indication of a hotel’s quality and services.
Questions:
  1. What are the challenges facing the Indian hospitality industry?
  2. What is HVS? What are the recommendations of HVS mentioned in this case study?
  3. What are the limitations of the present hotel rating system in India?
  4. If you are hired as the consultant, what measures do you suggest to imprve the present hotel rating system in India?
CASE 04: IMPLEMENTING QUALITY MANAGEMENT SYSTEM AT HYUNDAI MOTORS
Hyundai Motors India Limite3d, a 100 per cent subsidiary of the South Korea-based Hyundai Motor Company, started its operations in 1996. In September 1998, Hyundai India started mass production of its well-known hatchback “Santro.” It launched its second model “Accent” in October 1999.  It started establishing its products in the global market in 2000.  It launched its super luxury sedan “Sonata” in July 2001.
As per Hyundai India’s policy, quality simply does not mean meeting specifications.  Quality for Hyundai India means meeting customer requirements and exceeding their expectations.  The Company also concentrates on indirect customers and was the first to introduce MPFI(Multi-point fuel injection) in 1998 for the small car segment, even when the Euro II standards were not  mandatory.  This case study focuses on how Hyundai has been able to successfully adopt the automotive standard QS9000.
QS 9000
QS 9000 is a sector specific common supplier quality standard for the automotive industry.  In 1988, Chrysler Corporation, Ford Motor Company and General Motors Corporation came together to form the Supplier Quality Requirements  Task Force to standardize reference manuals, reporting formats and technical nomenclature for all documents related to supplier requirements.  In 1992, the task force harmonized the fundamental supplier quality systems manuals and assessment tools.  This gave rise to Quality System Requirements QS 9000—a common supplier quality requirements standard that was adopted by all three automotive companies.  It is based on the ISO 9001.  However, it contains additional requirements peculiar to the automotive industry.  Today many automotive companies have adopted QS 9000.
QS 9000 defines the fundamental quality system expectations of Chrysler, Ford, Genera; Motors and other subscribing companies for internal and external suppliers of production and services parts and materials.  QS 9000 is a harmonization of Chrysler’s Supplier Quality Assurance Manual, Ford’s Q-1011 Quality Systems Standard and General Motors’ NAO Targets for Excellence and supersedes all editions of these documents.  The benefits of QS 9000 certification
Include improved quality, improved efficiency, improved delivery and company morale, improved internal and external communication.
The QS 9000 applies to all internal or external, potential or existing suppliers’ vendors/subcontractors of production materials, Production or service Parts, heat-treating, painting, plating, finishing services who supply to OEM ( Original Equipment manufacturers ) customers subscribing to the QS 9000 standard.
QS 9000 is a supplement to ISO 9000 with additional requirements for each ISO 9001.  The standard has undergone two revisions since its inception.  The third edition of QS 9000 standard comprises two primary sections.  Section 1 deals with ISO 9000 – based requirements and sector specific requirements while Section II deals with customer-specific requirements.
QS 9000 at Hyundai
Hyundai India was certified to QS 9000 in January 2002, QS 9000 is a customer-driven automotive standard that focuses on defect prevention, continuous improvement and reduction of wastage or variation in the supply chain, development of sub-contractors, product quality, cost, delivery and service.  It is based on a preventive methodology and uses disciplined problem-solving methods.
Benefits of QS 9000 Certification for Hyundai
After QS 9000 certification, activities were streamlined and a focused approach to planning was established.  A team of professionals started concentrating on solving problems and identifying potential areas of improvement.  The main benefits of QS 9000 were.
  • The attitude of workers improved. They felt encouraged to come out with more ideas on mistake-proofing, defect-prevention, statistical  analysis  of a particular activity, etc.
  • The company was able to identify potential failures of the product and take control measures in time by adoption of Failure Mode and Effect Analysis ( FMEA ).
  • Hyundai was able to measure the customer satisfaction/dissatisfaction levels, whereby they were able to improve products through process control.
  • Hyundai has been able to improve the direct pass ratio of vehicles. The field claims on product have also reduced.
  • Customer complaints were analysed by the auditors at length and they also looked at the corrective and preventive action plan.  By adopting QS 9000, the company has eliminated all unrelated/waste processes, non-value added solutions, thereby focusing only on the customer requirements.
  • Employees could relae to QS 9000, as it was close to their work. The employees became more proactive.
The company also realized the importance of the competence of the certification body in implementing a standard.  The full objective of the standard can be achieved only if the certification body is competent.

ICMIND MBA CASE STUDY SOLUTIONS – Hotel Valuation Services (HVS) was founded in1980 by Steve Rushmore. It is the world’s leading consulting and services organization focused on the hltel, restaurant

ICMIND MBA CASE STUDY SOLUTIONS – Hotel Valuation Services (HVS) was founded in1980 by Steve Rushmore. It is the world’s leading consulting and services organization focused on the hltel, restaurant

Hotel Valuation Services

Questions:
  1. Why did Hyundai decide to implement the QS 9000 system?
  2. What is the difference between ISO 9000 and QS 9000?
  3. Explain the QS 9000 system.
  4. What were the benefits of QS 9000 implementation at Hyundai? 
CASE 05: Supplier Quality Audit at Tata Motors
Tata Motors Private Limited is a leading manufacturer of trucks in India and India’s largest automobile company.  It is the second-largest manufacturer of passenger vehicles in the World.  The company is the world’s fifth-largest medium and heavy commercial vehicles manufacturer and the world’s second-largest medium and heavy bus manufacturer.
Tata Indica
Ratan Tata, the chairman of Tata Motors, had always dreamed of building the country’s first indigenous small car.  In 1995, the company announced that it planned to build the Tata Indica, a car as spacious as the Ambassador, priced close to the Maruti 800 and shaped like the Zen.  Tata Motors had to face many challenges in the process of designing and building the India.
Outsourcing
Tata Motors had to take its primary make or buy decisions for the key inputs such as design, engine and transmission.  Outsourcing was one of the most difficult aspects of producing the Indica.  The company did not have the expertise either to design a car or to build an engine for it.  It had to create a supplier base from scratch.  The company decided to shop globally for the best deals and use its own expertise to make whatever modifications were needed.  Exhibit 18.1 provides a list of components outsourced for developing the Indica.
Exhibit  18.1 Components Outsourced  by Tata Motors
       Sl.No.                                                   Components                                               Supplier
  1. Five door hatch back                                                                   Idea Italy
  2. Engine                                                                                              Institute Francais, France
  3. Assembly line                                                                                Nissan’s Plant Australia
  4. Presses                                                                                            Mercedes Benz
  5. Pistons and piston rings                                                           India Pistons
  6. Electrical components and fuel  injection systems        Lucas — TVS              
  7. Steering systems                                                                           Rane TRW Steering system
  8. Clutch facings and rear drum brake linings                       Sundaram Brake Linings (SBL)
  9. Seating systems                                                                              Tata – Johnson Controls
  10.     Radiators                                                                                       Tata – Toyo
  11. Rear View Mirrors                                                                         Tata – Ficosa
  12. Front and rear bumper, dash board, inside trims            Tata – Auto Plastics
  13. Air – conditioning kits                                                                  Subros Ltd.
  14. Wind screens and windows                                                        Asahi Glass
  15. Fuel lines                                                                                            Imperial Auto
  16. Differential assemblies                                                                 Sona Koyo Steering
  17.     Sheet metal items                                                                         IBM Tools             
Supplier Quality Audit
After making the make or buy decisions, the next step was to identify the suppliers.  Most of the parts and components were sourced locally.  Only about two per cent of the component value was secured from other global players.  Localization of the components was the most important challenge for the company.  The Indica was totally indigenous.
Tata Motors undertook supplier audits to select and monitor suppliers during the development of the Indica.  Supplier audit is an integral part of the decision process for supplier selection.  It enables guarantees regarding design, manufacturing, system, product, raw material and services.  It also enables answering to regulatory requirements which impose these audits.  A supplier quality audit team was formed with a view to ensuring acceptable supplier quality, which became very critical.  The yardstick employed by the company for selecting suppliers was the ability to supply components at the negotiated quality, cost and quantities.
 The selection of supplier by the team involved following steps:
  • An initial assessment team from Tata Motors evaluated the supplier.
  • Self-evaluation of the supplier based on the format provided by the company.
  • Quality system survey design validation.
  • Manufacturing validation.
  • Product Part Approval Process (PPAP) for certifying the product quality.
Tata Motors also set up Supplier Quality Improvement Teams to improve the vendors’ system to ensure that they produced defect-free parts.  It applied a thirteen – step quality improvement programme covering supplier self-evaluation, through design-validation and audit of supplier quality. Another key to the company’s successful vendor-base was a modern system of process management.  Tata Motor’s target-costing was broken up into vendor – wise cost targets, and the suppliers had to carry out their own value-engineering exercises to lower cost and improve quality.
Questions:
  1. What were the challenges faced by TATA Motors while selecting its suppliers for India?
  2. What were the reasons for setting up a supplier quality team at TATA motors?
  3. What was the approach followed by the supplier quality audit team?
  4. What is the difference between supplier quality audit and third party quality audit?

 

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ICMIND ANSWER SHEETS – Explain the various benefit received by Bharti after implementing CRM

ICMIND ANSWER SHEETS – Explain the various benefit received by Bharti after implementing CRM

ICMIND ANSWER SHEETS – Explain the various benefit received by Bharti after implementing CRM

 

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Total Quality Management

 

 
CASE 01: TPM AT MRC BEARINGS
CASE 02: Customer Relationship Management at Bharti
CASE 03: Hotel Valuation Services ( HVS )
CASE 04: IMPLEMENTING QUALITY MANAGEMENT SYSTEM AT HYUNDAI MOTORS
CASE 05: Supplier Quality Audit at Tata Motors
CASE 01: TPM AT MRC BEARINGS
MRC Bearing, the largest producer of aero-engine bearings in the world, is located in Falconer, New York.  The company is the primary aerospace bearings supplier to General Electric, Pratt—Whitney and Rolls Royce, as well as to the world’s leading military and helicopter programmes Problem Identification.
In 1996, the company realized that it was behind on orders.  Their customers were aggressive in their demands for cost reductions and shorter lead times.  The majority of their maintenance hours were dedicated to emergency work orders.  The company decided to implement a TPM programme in order to achieve a turnaround.  After the implementation of TPM, the company was able to achieve a 98 per cent decrease in unplanned maintenance hours.
TPM Journey
The company started its TPM programme by focusing on a small area, which was critical to processes but was experiencing chronic problems.  At first, a lot of people were skeptical and not really interested in getting involved with the TPM activities.  The company had a core team of people who were excited about TPM.  It also enlisted the help of people outside the organization to work with the core team
TPM at MRC began with a weeklong TPM event. It startd by cleaning, insecting lubricating and performing corrective work on a piece of machinery. Once a machine was cleaned, it would be painted.  At first, people were reluctant to participate in TPM events and ridiculed the TPM programme as “Totally Painted Machines.”  As time elapsed, people started appreciating the improvements brought about by TPM events.  Employees who were totally against TPM started participating in TPM workouts.
MRC  formed equipment improvement teams (EITs) to work on resolving equipment – related issues.  The team initially worked on a piece of equipment with chronic problems.  The equipment was breaking down on a monthly basis and required three or four days each time to fix it.  The team discovered  the original manufacturer had used a sub-spec coupling on a drive unit.  The problem was solved by upgrading to the proper coupling.  The problem was solved by taking the time out to find the root cause of the failures, rather than just fixing the symptoms.  In the years following this repair, the problem was completely eliminated.  That success showed a lot of people in the company that TPM can make everyone’s duly life easier as well as improve productivity.
After the initial success, MRC expanded their TPM efforts to their second facility.  They created a  TPM Steering Committee at their second site and also created  a policy group to co-ordinate the efforts  of both facilities.  MRC trained 10 TPM Area Co-ordinators who undertake TPM activities for one week in each month.  These TPM Co-ordinators organize TPM events in their areas, also lead EITs and make sure the process keeps working.  MRC has begun to create full-time TPM teams.  One such team was able to correct a long-standing equipment problem.  This resulted in reducing the scrap produced by that equipment to almost zero.  The areas that MRCD focused on were.
  1. Preventive maintenance
  2. Putting predictive maintenance process in place (I.e. vibration analysis equipment)
  3. Cleaning the machines, resulting in inspection
  4. Creating standards on the equipment for cleaning, lubrication and daily checks
  5. Collecting data on downtime
  6. Creating equipment improvement teams
  7. Creating TPM area co-coordinators
Lessons Learnt
The most important lesson learnt was that training is the key to being successful with TPM.  The company has organized some initial TPM awareness training programmes for the organization for both operators and mechanics.  However, looking back they could have had achieved success faster if more training had been imparted.  The support of the top management, the union, the hard work of the people at MRC and the support of their customers were the factors instrumental to the success of the TPM initiative.
QUESTIONS:
  1. What were the problems faced by MRC?
  2. What was the solution used to address the problems at MRC?
  3. What were the attributes responsible for the successful implementation of TPM at MRC?
  4. Explain the TPM journey at MRC.
  5. Comment on the statement “TPM is not totally painted machines but taking pride in our machines.”
CASE 02: Customer Relationship Management at Bharti
Bharti Tele-ventures is one of India’s leading private sector telecom operators. Its cellular business, Airtel, is a leading mobile telephony brand. Like any telecom organization, Bharti considers information technology as a key business enabler.  According to Amrita Gangotra, vice – president of Information Technology at Bharti, IT works as a support system as well as a key business driver
The company has a wide area network (WAN) in place with a mix of leased lines and E1 and E3 lines.  The company extends different applications to its dealers and partners through its extranet.  The company also has procured a range of high-end servers from Sun and HP.  The company also has a strong area network (SAN) in place because its daily storage requirements are in tetra bytes. The main data centre is located in Gurgaon, Haryana; Bharti has procured billing, fraud management, revenue assurance and data warehousing software.
The Case for CRM
During the initial stages of its operations, the company’s systems were run manually.  Only 40 per cent of customer issues were getting resolved. The company decided to equip itself with tools that would help in resolving 90 percent of its customer issues.  The company decided to opt for a CRM solution to manage customer expectations and provide them with innovative products and services.
Oracle CRM Platform
Bharti wanted to fulfill its vision of providing the same quality of services anywhere and at any time. The company was particular that its customers should get the same quality of service no matter which of its call centers he or she contacts.  It evaluated many options before choosing its centralized CRM tool.  The factors considered were proper workflow automation, facilitation of knowledge sharing and integration with the billing system. After a thorough evaluation exercise, it decided to go ahead with the Oracle CRM platform.
Rolling out
After the company started its operations in Delhi, it acquired many circles and sought new licenses in other circles.  The CRM tool was implemented immediately whenever it obtained a new license.  However, the company had to put in place a phased migration strategy in the acquired circles, which had an existing subscriber base.  The migration had to be done in such a manner that the existing customer base did not suffer.  The migration was completed in a phased manner by the first quarter of 2004. The biggest challenge for Bharti was to have a unified process in lace.  They also faced the challenge of imparting training.  The company was successfully able to overcome to technical difficulties that it faced during implementation.
The CRM strategy at Bharti revolves around two aspects—operational CRM and analytical CRM. Operational CRM revolves around improving the workflow of call centres and helping them in their day-to-day activities.  Analytical CRM provides staff with the required information on customers and is used for business development
The company has successfully used its CRM solution to provide products tailor-made to the needs of its customers.  Thus, customers receive more value for money.  Customers now have access to different schemes and services depending on airtime usage.  Bharti has also managed to segregate its workflow with the help of the CRM tool.
QUESTIONS:
  1. Why did Bharti Tele-ventures opt for a CRM solution?
  2. What were the challenges faced by Bharti in its CRM implementation process?
  3. Discuss the strategy used by the company for implementing CRM and why.
  4. Explain the various benefit received by Bharti after implementing CRM.
CASE 03: Hotel Valuation Services ( HVS )
Hotel Valuation Services (HVS) was founded in1980 by Steve Rushmore.  It is the world’s leading consulting and services organization focused on the hltel, restaurant, shared ownership, gaming and leisure industries.  Rushmore began his career as a consultant ion the hospitality division of a prominent New York City real estate firm.  He quickly realized that a limited body of knowledge was available to assess the value of hotels.  He founded HVS to fill this perceived gap.
The HVS method of providing an economic study and appraisal for hotels and motels immediately became the industry standard.  HVS is focused on the hotel, restaurant, timeshare, gaming and leisure industries.  The company has more than 300 consultants offering specialized services through its network of 25 offices worldwide.
Studies conducted by HVS indicate that 2010 is going to be a challenging year for the Indian hospitality industry.
Challenges for the Hospitality Sector
The tourism industry is highly susceptible to changes in the macro-environment.  The aviation and hospitality sectors are among the first to get affected by an adverse environment and also the last to recuperate.
The main challenges faced by the hospitality sector in India include lack of infrastructure and facilities, lack of human resources and training, the hotel rating system not being at par with international standards, intense competition from global players and multiplicity of taxes.
HVS Recommendations
HVS has made the following recommendation in order to address the challenges faced by the hotel industry.
  • Grant hotels industry status across India
  • Include tourism as a subject in the Concurrent List of the Constitution of India
  • Grant hotels infrastructure status under Sec 80-IA of IT Act
  • Impose a single uniform luxury tax, based on the actual room tariff only, across all Indian sates
  • Impose uniform tax rates on rooms, food and beverages, and liquor across the country
  • Give incentives, in the form of tax breaks, to re-invested capital in the hotel industry
  • Extend the benefits of Sec 80-ID to other parts of India
  • Develop a more scientific rating system to truly benchmark hotel quality
Hotel Rating Process
Various approaches are used across the globe to classify hotels.  The most common approaches followed are;
Registration:  This involves basic  level listing of properties that meet agreed minimum standards.
Classification: Hotels are classified into various categories based on the amenities offered. All establishments have to follow certain minimum standards.
Grading: Hotels are graded according to the quality of services delivered to customers. Assessment of this nature is highly complex and time consuming.
Hotel Rating System in India: India has been using the “Classification” system with mixed results for over four decades; HVS recommends that the present rating system in India should be upgraded to the “Grading” system to enable it to employ a more discretionary approach to the process.  Hotels, motels and other lodging in India are inspected and categorized according to their products and services by the Hotel and Restaurant Approval and Classification Committee (HRACC), a body instituted by the Ministry of Tourism. However, the checklist used by HRACC has some serious shortcomings.  The minimum standards are too weak and lenient.  Hotels that do not adhere to minimum standards are penalized.  However, benefits are not offered to hotels that offer services above the minimum standards.  The checklist focuses on physical infrastructure alone and is not very effective in assessing the quality of services.
The present system needs a complete overhaul in order to remain relevant in the dynamic market scenario.  Safety and hygiene should be the first parameters in the classification process.  The government should focus on the safety and hygiene parameters than on the commercial aspects of classification.  The HRACC classification should be revamped so that it provides a more accurate indication of a hotel’s quality and services.
Questions:
  1. What are the challenges facing the Indian hospitality industry?
  2. What is HVS? What are the recommendations of HVS mentioned in this case study?
  3. What are the limitations of the present hotel rating system in India?
  4. If you are hired as the consultant, what measures do you suggest to imprve the present hotel rating system in India?
CASE 04: IMPLEMENTING QUALITY MANAGEMENT SYSTEM AT HYUNDAI MOTORS
Hyundai Motors India Limite3d, a 100 per cent subsidiary of the South Korea-based Hyundai Motor Company, started its operations in 1996. In September 1998, Hyundai India started mass production of its well-known hatchback “Santro.” It launched its second model “Accent” in October 1999.  It started establishing its products in the global market in 2000.  It launched its super luxury sedan “Sonata” in July 2001.
As per Hyundai India’s policy, quality simply does not mean meeting specifications.  Quality for Hyundai India means meeting customer requirements and exceeding their expectations.  The Company also concentrates on indirect customers and was the first to introduce MPFI(Multi-point fuel injection) in 1998 for the small car segment, even when the Euro II standards were not  mandatory.  This case study focuses on how Hyundai has been able to successfully adopt the automotive standard QS9000.
QS 9000
QS 9000 is a sector specific common supplier quality standard for the automotive industry.  In 1988, Chrysler Corporation, Ford Motor Company and General Motors Corporation came together to form the Supplier Quality Requirements  Task Force to standardize reference manuals, reporting formats and technical nomenclature for all documents related to supplier requirements.  In 1992, the task force harmonized the fundamental supplier quality systems manuals and assessment tools.  This gave rise to Quality System Requirements QS 9000—a common supplier quality requirements standard that was adopted by all three automotive companies.  It is based on the ISO 9001.  However, it contains additional requirements peculiar to the automotive industry.  Today many automotive companies have adopted QS 9000.
QS 9000 defines the fundamental quality system expectations of Chrysler, Ford, Genera; Motors and other subscribing companies for internal and external suppliers of production and services parts and materials.  QS 9000 is a harmonization of Chrysler’s Supplier Quality Assurance Manual, Ford’s Q-1011 Quality Systems Standard and General Motors’ NAO Targets for Excellence and supersedes all editions of these documents.  The benefits of QS 9000 certification
Include improved quality, improved efficiency, improved delivery and company morale, improved internal and external communication.
The QS 9000 applies to all internal or external, potential or existing suppliers’ vendors/subcontractors of production materials, Production or service Parts, heat-treating, painting, plating, finishing services who supply to OEM ( Original Equipment manufacturers ) customers subscribing to the QS 9000 standard.
QS 9000 is a supplement to ISO 9000 with additional requirements for each ISO 9001.  The standard has undergone two revisions since its inception.  The third edition of QS 9000 standard comprises two primary sections.  Section 1 deals with ISO 9000 – based requirements and sector specific requirements while Section II deals with customer-specific requirements.
QS 9000 at Hyundai
Hyundai India was certified to QS 9000 in January 2002, QS 9000 is a customer-driven automotive standard that focuses on defect prevention, continuous improvement and reduction of wastage or variation in the supply chain, development of sub-contractors, product quality, cost, delivery and service.  It is based on a preventive methodology and uses disciplined problem-solving methods.
Benefits of QS 9000 Certification for Hyundai
After QS 9000 certification, activities were streamlined and a focused approach to planning was established.  A team of professionals started concentrating on solving problems and identifying potential areas of improvement.  The main benefits of QS 9000 were.
  • The attitude of workers improved. They felt encouraged to come out with more ideas on mistake-proofing, defect-prevention, statistical  analysis  of a particular activity, etc.
  • The company was able to identify potential failures of the product and take control measures in time by adoption of Failure Mode and Effect Analysis ( FMEA ).
  • Hyundai was able to measure the customer satisfaction/dissatisfaction levels, whereby they were able to improve products through process control.
  • Hyundai has been able to improve the direct pass ratio of vehicles. The field claims on product have also reduced.
  • Customer complaints were analysed by the auditors at length and they also looked at the corrective and preventive action plan.  By adopting QS 9000, the company has eliminated all unrelated/waste processes, non-value added solutions, thereby focusing only on the customer requirements.
  • Employees could relae to QS 9000, as it was close to their work. The employees became more proactive.
The company also realized the importance of the competence of the certification body in implementing a standard.  The full objective of the standard can be achieved only if the certification body is competent.

ICMIND ANSWER SHEETS – Explain the various benefit received by Bharti after implementing CRM

ICMIND ANSWER SHEETS – Explain the various benefit received by Bharti after implementing CRM
Questions:
  1. Why did Hyundai decide to implement the QS 9000 system?
  2. What is the difference between ISO 9000 and QS 9000?
  3. Explain the QS 9000 system.
  4. What were the benefits of QS 9000 implementation at Hyundai? 
CASE 05: Supplier Quality Audit at Tata Motors
Tata Motors Private Limited is a leading manufacturer of trucks in India and India’s largest automobile company.  It is the second-largest manufacturer of passenger vehicles in the World.  The company is the world’s fifth-largest medium and heavy commercial vehicles manufacturer and the world’s second-largest medium and heavy bus manufacturer.
Tata Indica
Ratan Tata, the chairman of Tata Motors, had always dreamed of building the country’s first indigenous small car.  In 1995, the company announced that it planned to build the Tata Indica, a car as spacious as the Ambassador, priced close to the Maruti 800 and shaped like the Zen.  Tata Motors had to face many challenges in the process of designing and building the India.
Outsourcing
Tata Motors had to take its primary make or buy decisions for the key inputs such as design, engine and transmission.  Outsourcing was one of the most difficult aspects of producing the Indica.  The company did not have the expertise either to design a car or to build an engine for it.  It had to create a supplier base from scratch.  The company decided to shop globally for the best deals and use its own expertise to make whatever modifications were needed.  Exhibit 18.1 provides a list of components outsourced for developing the Indica.
Exhibit  18.1 Components Outsourced  by Tata Motors
       Sl.No.                                                   Components                                               Supplier
  1. Five door hatch back                                                                   Idea Italy
  2. Engine                                                                                              Institute Francais, France
  3. Assembly line                                                                                Nissan’s Plant Australia
  4. Presses                                                                                            Mercedes Benz
  5. Pistons and piston rings                                                           India Pistons
  6. Electrical components and fuel  injection systems        Lucas — TVS              
  7. Steering systems                                                                           Rane TRW Steering system
  8. Clutch facings and rear drum brake linings                       Sundaram Brake Linings (SBL)
  9. Seating systems                                                                              Tata – Johnson Controls
  10.     Radiators                                                                                       Tata – Toyo
  11. Rear View Mirrors                                                                         Tata – Ficosa
  12. Front and rear bumper, dash board, inside trims            Tata – Auto Plastics
  13. Air – conditioning kits                                                                  Subros Ltd.
  14. Wind screens and windows                                                        Asahi Glass
  15. Fuel lines                                                                                            Imperial Auto
  16. Differential assemblies                                                                 Sona Koyo Steering
  17.     Sheet metal items                                                                         IBM Tools             
Supplier Quality Audit
After making the make or buy decisions, the next step was to identify the suppliers.  Most of the parts and components were sourced locally.  Only about two per cent of the component value was secured from other global players.  Localization of the components was the most important challenge for the company.  The Indica was totally indigenous.
Tata Motors undertook supplier audits to select and monitor suppliers during the development of the Indica.  Supplier audit is an integral part of the decision process for supplier selection.  It enables guarantees regarding design, manufacturing, system, product, raw material and services.  It also enables answering to regulatory requirements which impose these audits.  A supplier quality audit team was formed with a view to ensuring acceptable supplier quality, which became very critical.  The yardstick employed by the company for selecting suppliers was the ability to supply components at the negotiated quality, cost and quantities.
 The selection of supplier by the team involved following steps:
  • An initial assessment team from Tata Motors evaluated the supplier.
  • Self-evaluation of the supplier based on the format provided by the company.
  • Quality system survey design validation.
  • Manufacturing validation.
  • Product Part Approval Process (PPAP) for certifying the product quality.
Tata Motors also set up Supplier Quality Improvement Teams to improve the vendors’ system to ensure that they produced defect-free parts.  It applied a thirteen – step quality improvement programme covering supplier self-evaluation, through design-validation and audit of supplier quality. Another key to the company’s successful vendor-base was a modern system of process management.  Tata Motor’s target-costing was broken up into vendor – wise cost targets, and the suppliers had to carry out their own value-engineering exercises to lower cost and improve quality.
Questions:
  1. What were the challenges faced by TATA Motors while selecting its suppliers for India?
  2. What were the reasons for setting up a supplier quality team at TATA motors?
  3. What was the approach followed by the supplier quality audit team?
  4. What is the difference between supplier quality audit and third party quality audit?

 

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ICMIND BMS SOLUTIONS – Explain the TPM journey at MRC

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Total Quality Management

 

 
CASE 01: TPM AT MRC BEARINGS
CASE 02: Customer Relationship Management at Bharti
CASE 03: Hotel Valuation Services ( HVS )
CASE 04: IMPLEMENTING QUALITY MANAGEMENT SYSTEM AT HYUNDAI MOTORS
CASE 05: Supplier Quality Audit at Tata Motors
CASE 01: TPM AT MRC BEARINGS
MRC Bearing, the largest producer of aero-engine bearings in the world, is located in Falconer, New York.  The company is the primary aerospace bearings supplier to General Electric, Pratt—Whitney and Rolls Royce, as well as to the world’s leading military and helicopter programmes Problem Identification.
In 1996, the company realized that it was behind on orders.  Their customers were aggressive in their demands for cost reductions and shorter lead times.  The majority of their maintenance hours were dedicated to emergency work orders.  The company decided to implement a TPM programme in order to achieve a turnaround.  After the implementation of TPM, the company was able to achieve a 98 per cent decrease in unplanned maintenance hours.
TPM Journey
The company started its TPM programme by focusing on a small area, which was critical to processes but was experiencing chronic problems.  At first, a lot of people were skeptical and not really interested in getting involved with the TPM activities.  The company had a core team of people who were excited about TPM.  It also enlisted the help of people outside the organization to work with the core team
TPM at MRC began with a weeklong TPM event. It startd by cleaning, insecting lubricating and performing corrective work on a piece of machinery. Once a machine was cleaned, it would be painted.  At first, people were reluctant to participate in TPM events and ridiculed the TPM programme as “Totally Painted Machines.”  As time elapsed, people started appreciating the improvements brought about by TPM events.  Employees who were totally against TPM started participating in TPM workouts.
MRC  formed equipment improvement teams (EITs) to work on resolving equipment – related issues.  The team initially worked on a piece of equipment with chronic problems.  The equipment was breaking down on a monthly basis and required three or four days each time to fix it.  The team discovered  the original manufacturer had used a sub-spec coupling on a drive unit.  The problem was solved by upgrading to the proper coupling.  The problem was solved by taking the time out to find the root cause of the failures, rather than just fixing the symptoms.  In the years following this repair, the problem was completely eliminated.  That success showed a lot of people in the company that TPM can make everyone’s duly life easier as well as improve productivity.
After the initial success, MRC expanded their TPM efforts to their second facility.  They created a  TPM Steering Committee at their second site and also created  a policy group to co-ordinate the efforts  of both facilities.  MRC trained 10 TPM Area Co-ordinators who undertake TPM activities for one week in each month.  These TPM Co-ordinators organize TPM events in their areas, also lead EITs and make sure the process keeps working.  MRC has begun to create full-time TPM teams.  One such team was able to correct a long-standing equipment problem.  This resulted in reducing the scrap produced by that equipment to almost zero.  The areas that MRCD focused on were.
  1. Preventive maintenance
  2. Putting predictive maintenance process in place (I.e. vibration analysis equipment)
  3. Cleaning the machines, resulting in inspection
  4. Creating standards on the equipment for cleaning, lubrication and daily checks
  5. Collecting data on downtime
  6. Creating equipment improvement teams
  7. Creating TPM area co-coordinators
Lessons Learnt
The most important lesson learnt was that training is the key to being successful with TPM.  The company has organized some initial TPM awareness training programmes for the organization for both operators and mechanics.  However, looking back they could have had achieved success faster if more training had been imparted.  The support of the top management, the union, the hard work of the people at MRC and the support of their customers were the factors instrumental to the success of the TPM initiative.
QUESTIONS:
  1. What were the problems faced by MRC?
  2. What was the solution used to address the problems at MRC?
  3. What were the attributes responsible for the successful implementation of TPM at MRC?
  4. Explain the TPM journey at MRC.
  5. Comment on the statement “TPM is not totally painted machines but taking pride in our machines.”
CASE 02: Customer Relationship Management at Bharti
Bharti Tele-ventures is one of India’s leading private sector telecom operators. Its cellular business, Airtel, is a leading mobile telephony brand. Like any telecom organization, Bharti considers information technology as a key business enabler.  According to Amrita Gangotra, vice – president of Information Technology at Bharti, IT works as a support system as well as a key business driver
The company has a wide area network (WAN) in place with a mix of leased lines and E1 and E3 lines.  The company extends different applications to its dealers and partners through its extranet.  The company also has procured a range of high-end servers from Sun and HP.  The company also has a strong area network (SAN) in place because its daily storage requirements are in tetra bytes. The main data centre is located in Gurgaon, Haryana; Bharti has procured billing, fraud management, revenue assurance and data warehousing software.
The Case for CRM
During the initial stages of its operations, the company’s systems were run manually.  Only 40 per cent of customer issues were getting resolved. The company decided to equip itself with tools that would help in resolving 90 percent of its customer issues.  The company decided to opt for a CRM solution to manage customer expectations and provide them with innovative products and services.
Oracle CRM Platform
Bharti wanted to fulfill its vision of providing the same quality of services anywhere and at any time. The company was particular that its customers should get the same quality of service no matter which of its call centers he or she contacts.  It evaluated many options before choosing its centralized CRM tool.  The factors considered were proper workflow automation, facilitation of knowledge sharing and integration with the billing system. After a thorough evaluation exercise, it decided to go ahead with the Oracle CRM platform.
Rolling out
After the company started its operations in Delhi, it acquired many circles and sought new licenses in other circles.  The CRM tool was implemented immediately whenever it obtained a new license.  However, the company had to put in place a phased migration strategy in the acquired circles, which had an existing subscriber base.  The migration had to be done in such a manner that the existing customer base did not suffer.  The migration was completed in a phased manner by the first quarter of 2004. The biggest challenge for Bharti was to have a unified process in lace.  They also faced the challenge of imparting training.  The company was successfully able to overcome to technical difficulties that it faced during implementation.
The CRM strategy at Bharti revolves around two aspects—operational CRM and analytical CRM. Operational CRM revolves around improving the workflow of call centres and helping them in their day-to-day activities.  Analytical CRM provides staff with the required information on customers and is used for business development
The company has successfully used its CRM solution to provide products tailor-made to the needs of its customers.  Thus, customers receive more value for money.  Customers now have access to different schemes and services depending on airtime usage.  Bharti has also managed to segregate its workflow with the help of the CRM tool.
QUESTIONS:
  1. Why did Bharti Tele-ventures opt for a CRM solution?
  2. What were the challenges faced by Bharti in its CRM implementation process?
  3. Discuss the strategy used by the company for implementing CRM and why.
  4. Explain the various benefit received by Bharti after implementing CRM.
CASE 03: Hotel Valuation Services ( HVS )
Hotel Valuation Services (HVS) was founded in1980 by Steve Rushmore.  It is the world’s leading consulting and services organization focused on the hltel, restaurant, shared ownership, gaming and leisure industries.  Rushmore began his career as a consultant ion the hospitality division of a prominent New York City real estate firm.  He quickly realized that a limited body of knowledge was available to assess the value of hotels.  He founded HVS to fill this perceived gap.
The HVS method of providing an economic study and appraisal for hotels and motels immediately became the industry standard.  HVS is focused on the hotel, restaurant, timeshare, gaming and leisure industries.  The company has more than 300 consultants offering specialized services through its network of 25 offices worldwide.
Studies conducted by HVS indicate that 2010 is going to be a challenging year for the Indian hospitality industry.
Challenges for the Hospitality Sector
The tourism industry is highly susceptible to changes in the macro-environment.  The aviation and hospitality sectors are among the first to get affected by an adverse environment and also the last to recuperate.
The main challenges faced by the hospitality sector in India include lack of infrastructure and facilities, lack of human resources and training, the hotel rating system not being at par with international standards, intense competition from global players and multiplicity of taxes.
HVS Recommendations
HVS has made the following recommendation in order to address the challenges faced by the hotel industry.
  • Grant hotels industry status across India
  • Include tourism as a subject in the Concurrent List of the Constitution of India
  • Grant hotels infrastructure status under Sec 80-IA of IT Act
  • Impose a single uniform luxury tax, based on the actual room tariff only, across all Indian sates
  • Impose uniform tax rates on rooms, food and beverages, and liquor across the country
  • Give incentives, in the form of tax breaks, to re-invested capital in the hotel industry
  • Extend the benefits of Sec 80-ID to other parts of India
  • Develop a more scientific rating system to truly benchmark hotel quality
Hotel Rating Process
Various approaches are used across the globe to classify hotels.  The most common approaches followed are;
Registration:  This involves basic  level listing of properties that meet agreed minimum standards.
Classification: Hotels are classified into various categories based on the amenities offered. All establishments have to follow certain minimum standards.
Grading: Hotels are graded according to the quality of services delivered to customers. Assessment of this nature is highly complex and time consuming.
Hotel Rating System in India: India has been using the “Classification” system with mixed results for over four decades; HVS recommends that the present rating system in India should be upgraded to the “Grading” system to enable it to employ a more discretionary approach to the process.  Hotels, motels and other lodging in India are inspected and categorized according to their products and services by the Hotel and Restaurant Approval and Classification Committee (HRACC), a body instituted by the Ministry of Tourism. However, the checklist used by HRACC has some serious shortcomings.  The minimum standards are too weak and lenient.  Hotels that do not adhere to minimum standards are penalized.  However, benefits are not offered to hotels that offer services above the minimum standards.  The checklist focuses on physical infrastructure alone and is not very effective in assessing the quality of services.
The present system needs a complete overhaul in order to remain relevant in the dynamic market scenario.  Safety and hygiene should be the first parameters in the classification process.  The government should focus on the safety and hygiene parameters than on the commercial aspects of classification.  The HRACC classification should be revamped so that it provides a more accurate indication of a hotel’s quality and services.
Questions:
  1. What are the challenges facing the Indian hospitality industry?
  2. What is HVS? What are the recommendations of HVS mentioned in this case study?
  3. What are the limitations of the present hotel rating system in India?
  4. If you are hired as the consultant, what measures do you suggest to imprve the present hotel rating system in India?
CASE 04: IMPLEMENTING QUALITY MANAGEMENT SYSTEM AT HYUNDAI MOTORS
Hyundai Motors India Limite3d, a 100 per cent subsidiary of the South Korea-based Hyundai Motor Company, started its operations in 1996. In September 1998, Hyundai India started mass production of its well-known hatchback “Santro.” It launched its second model “Accent” in October 1999.  It started establishing its products in the global market in 2000.  It launched its super luxury sedan “Sonata” in July 2001.
As per Hyundai India’s policy, quality simply does not mean meeting specifications.  Quality for Hyundai India means meeting customer requirements and exceeding their expectations.  The Company also concentrates on indirect customers and was the first to introduce MPFI(Multi-point fuel injection) in 1998 for the small car segment, even when the Euro II standards were not  mandatory.  This case study focuses on how Hyundai has been able to successfully adopt the automotive standard QS9000.
QS 9000
QS 9000 is a sector specific common supplier quality standard for the automotive industry.  In 1988, Chrysler Corporation, Ford Motor Company and General Motors Corporation came together to form the Supplier Quality Requirements  Task Force to standardize reference manuals, reporting formats and technical nomenclature for all documents related to supplier requirements.  In 1992, the task force harmonized the fundamental supplier quality systems manuals and assessment tools.  This gave rise to Quality System Requirements QS 9000—a common supplier quality requirements standard that was adopted by all three automotive companies.  It is based on the ISO 9001.  However, it contains additional requirements peculiar to the automotive industry.  Today many automotive companies have adopted QS 9000.
QS 9000 defines the fundamental quality system expectations of Chrysler, Ford, Genera; Motors and other subscribing companies for internal and external suppliers of production and services parts and materials.  QS 9000 is a harmonization of Chrysler’s Supplier Quality Assurance Manual, Ford’s Q-1011 Quality Systems Standard and General Motors’ NAO Targets for Excellence and supersedes all editions of these documents.  The benefits of QS 9000 certification
Include improved quality, improved efficiency, improved delivery and company morale, improved internal and external communication.
The QS 9000 applies to all internal or external, potential or existing suppliers’ vendors/subcontractors of production materials, Production or service Parts, heat-treating, painting, plating, finishing services who supply to OEM ( Original Equipment manufacturers ) customers subscribing to the QS 9000 standard.
QS 9000 is a supplement to ISO 9000 with additional requirements for each ISO 9001.  The standard has undergone two revisions since its inception.  The third edition of QS 9000 standard comprises two primary sections.  Section 1 deals with ISO 9000 – based requirements and sector specific requirements while Section II deals with customer-specific requirements.
QS 9000 at Hyundai
Hyundai India was certified to QS 9000 in January 2002, QS 9000 is a customer-driven automotive standard that focuses on defect prevention, continuous improvement and reduction of wastage or variation in the supply chain, development of sub-contractors, product quality, cost, delivery and service.  It is based on a preventive methodology and uses disciplined problem-solving methods.
Benefits of QS 9000 Certification for Hyundai
After QS 9000 certification, activities were streamlined and a focused approach to planning was established.  A team of professionals started concentrating on solving problems and identifying potential areas of improvement.  The main benefits of QS 9000 were.
  • The attitude of workers improved. They felt encouraged to come out with more ideas on mistake-proofing, defect-prevention, statistical  analysis  of a particular activity, etc.
  • The company was able to identify potential failures of the product and take control measures in time by adoption of Failure Mode and Effect Analysis ( FMEA ).
  • Hyundai was able to measure the customer satisfaction/dissatisfaction levels, whereby they were able to improve products through process control.
  • Hyundai has been able to improve the direct pass ratio of vehicles. The field claims on product have also reduced.
  • Customer complaints were analysed by the auditors at length and they also looked at the corrective and preventive action plan.  By adopting QS 9000, the company has eliminated all unrelated/waste processes, non-value added solutions, thereby focusing only on the customer requirements.
  • Employees could relae to QS 9000, as it was close to their work. The employees became more proactive.
The company also realized the importance of the competence of the certification body in implementing a standard.  The full objective of the standard can be achieved only if the certification body is competent.

ICMIND BMS SOLUTIONS – Explain the TPM journey at MRC

ICMIND BMS SOLUTIONS – Explain the TPM journey at MRC
Questions:
  1. Why did Hyundai decide to implement the QS 9000 system?
  2. What is the difference between ISO 9000 and QS 9000?
  3. Explain the QS 9000 system.
  4. What were the benefits of QS 9000 implementation at Hyundai? 
CASE 05: Supplier Quality Audit at Tata Motors
Tata Motors Private Limited is a leading manufacturer of trucks in India and India’s largest automobile company.  It is the second-largest manufacturer of passenger vehicles in the World.  The company is the world’s fifth-largest medium and heavy commercial vehicles manufacturer and the world’s second-largest medium and heavy bus manufacturer.
Tata Indica
Ratan Tata, the chairman of Tata Motors, had always dreamed of building the country’s first indigenous small car.  In 1995, the company announced that it planned to build the Tata Indica, a car as spacious as the Ambassador, priced close to the Maruti 800 and shaped like the Zen.  Tata Motors had to face many challenges in the process of designing and building the India.
Outsourcing
Tata Motors had to take its primary make or buy decisions for the key inputs such as design, engine and transmission.  Outsourcing was one of the most difficult aspects of producing the Indica.  The company did not have the expertise either to design a car or to build an engine for it.  It had to create a supplier base from scratch.  The company decided to shop globally for the best deals and use its own expertise to make whatever modifications were needed.  Exhibit 18.1 provides a list of components outsourced for developing the Indica.
Exhibit  18.1 Components Outsourced  by Tata Motors
       Sl.No.                                                   Components                                               Supplier
  1. Five door hatch back                                                                   Idea Italy
  2. Engine                                                                                              Institute Francais, France
  3. Assembly line                                                                                Nissan’s Plant Australia
  4. Presses                                                                                            Mercedes Benz
  5. Pistons and piston rings                                                           India Pistons
  6. Electrical components and fuel  injection systems        Lucas — TVS              
  7. Steering systems                                                                           Rane TRW Steering system
  8. Clutch facings and rear drum brake linings                       Sundaram Brake Linings (SBL)
  9. Seating systems                                                                              Tata – Johnson Controls
  10.     Radiators                                                                                       Tata – Toyo
  11. Rear View Mirrors                                                                         Tata – Ficosa
  12. Front and rear bumper, dash board, inside trims            Tata – Auto Plastics
  13. Air – conditioning kits                                                                  Subros Ltd.
  14. Wind screens and windows                                                        Asahi Glass
  15. Fuel lines                                                                                            Imperial Auto
  16. Differential assemblies                                                                 Sona Koyo Steering
  17.     Sheet metal items                                                                         IBM Tools             
Supplier Quality Audit
After making the make or buy decisions, the next step was to identify the suppliers.  Most of the parts and components were sourced locally.  Only about two per cent of the component value was secured from other global players.  Localization of the components was the most important challenge for the company.  The Indica was totally indigenous.
Tata Motors undertook supplier audits to select and monitor suppliers during the development of the Indica.  Supplier audit is an integral part of the decision process for supplier selection.  It enables guarantees regarding design, manufacturing, system, product, raw material and services.  It also enables answering to regulatory requirements which impose these audits.  A supplier quality audit team was formed with a view to ensuring acceptable supplier quality, which became very critical.  The yardstick employed by the company for selecting suppliers was the ability to supply components at the negotiated quality, cost and quantities.
 The selection of supplier by the team involved following steps:
  • An initial assessment team from Tata Motors evaluated the supplier.
  • Self-evaluation of the supplier based on the format provided by the company.
  • Quality system survey design validation.
  • Manufacturing validation.
  • Product Part Approval Process (PPAP) for certifying the product quality.
Tata Motors also set up Supplier Quality Improvement Teams to improve the vendors’ system to ensure that they produced defect-free parts.  It applied a thirteen – step quality improvement programme covering supplier self-evaluation, through design-validation and audit of supplier quality. Another key to the company’s successful vendor-base was a modern system of process management.  Tata Motor’s target-costing was broken up into vendor – wise cost targets, and the suppliers had to carry out their own value-engineering exercises to lower cost and improve quality.
Questions:
  1. What were the challenges faced by TATA Motors while selecting its suppliers for India?
  2. What were the reasons for setting up a supplier quality team at TATA motors?
  3. What was the approach followed by the supplier quality audit team?
  4. What is the difference between supplier quality audit and third party quality audit?

 

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ICMIND DMS ANSWER SHEETS – Explain the QS 9000 system

ICMIND DMS ANSWER SHEETS – Explain the QS 9000 system

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Total Quality Management

 

 
CASE 01: TPM AT MRC BEARINGS
CASE 02: Customer Relationship Management at Bharti
CASE 03: Hotel Valuation Services ( HVS )
CASE 04: IMPLEMENTING QUALITY MANAGEMENT SYSTEM AT HYUNDAI MOTORS
CASE 05: Supplier Quality Audit at Tata Motors
CASE 01: TPM AT MRC BEARINGS
MRC Bearing, the largest producer of aero-engine bearings in the world, is located in Falconer, New York.  The company is the primary aerospace bearings supplier to General Electric, Pratt—Whitney and Rolls Royce, as well as to the world’s leading military and helicopter programmes Problem Identification.
In 1996, the company realized that it was behind on orders.  Their customers were aggressive in their demands for cost reductions and shorter lead times.  The majority of their maintenance hours were dedicated to emergency work orders.  The company decided to implement a TPM programme in order to achieve a turnaround.  After the implementation of TPM, the company was able to achieve a 98 per cent decrease in unplanned maintenance hours.
TPM Journey
The company started its TPM programme by focusing on a small area, which was critical to processes but was experiencing chronic problems.  At first, a lot of people were skeptical and not really interested in getting involved with the TPM activities.  The company had a core team of people who were excited about TPM.  It also enlisted the help of people outside the organization to work with the core team
TPM at MRC began with a weeklong TPM event. It startd by cleaning, insecting lubricating and performing corrective work on a piece of machinery. Once a machine was cleaned, it would be painted.  At first, people were reluctant to participate in TPM events and ridiculed the TPM programme as “Totally Painted Machines.”  As time elapsed, people started appreciating the improvements brought about by TPM events.  Employees who were totally against TPM started participating in TPM workouts.
MRC  formed equipment improvement teams (EITs) to work on resolving equipment – related issues.  The team initially worked on a piece of equipment with chronic problems.  The equipment was breaking down on a monthly basis and required three or four days each time to fix it.  The team discovered  the original manufacturer had used a sub-spec coupling on a drive unit.  The problem was solved by upgrading to the proper coupling.  The problem was solved by taking the time out to find the root cause of the failures, rather than just fixing the symptoms.  In the years following this repair, the problem was completely eliminated.  That success showed a lot of people in the company that TPM can make everyone’s duly life easier as well as improve productivity.
After the initial success, MRC expanded their TPM efforts to their second facility.  They created a  TPM Steering Committee at their second site and also created  a policy group to co-ordinate the efforts  of both facilities.  MRC trained 10 TPM Area Co-ordinators who undertake TPM activities for one week in each month.  These TPM Co-ordinators organize TPM events in their areas, also lead EITs and make sure the process keeps working.  MRC has begun to create full-time TPM teams.  One such team was able to correct a long-standing equipment problem.  This resulted in reducing the scrap produced by that equipment to almost zero.  The areas that MRCD focused on were.
  1. Preventive maintenance
  2. Putting predictive maintenance process in place (I.e. vibration analysis equipment)
  3. Cleaning the machines, resulting in inspection
  4. Creating standards on the equipment for cleaning, lubrication and daily checks
  5. Collecting data on downtime
  6. Creating equipment improvement teams
  7. Creating TPM area co-coordinators
Lessons Learnt
The most important lesson learnt was that training is the key to being successful with TPM.  The company has organized some initial TPM awareness training programmes for the organization for both operators and mechanics.  However, looking back they could have had achieved success faster if more training had been imparted.  The support of the top management, the union, the hard work of the people at MRC and the support of their customers were the factors instrumental to the success of the TPM initiative.
QUESTIONS:
  1. What were the problems faced by MRC?
  2. What was the solution used to address the problems at MRC?
  3. What were the attributes responsible for the successful implementation of TPM at MRC?
  4. Explain the TPM journey at MRC.
  5. Comment on the statement “TPM is not totally painted machines but taking pride in our machines.”
CASE 02: Customer Relationship Management at Bharti
Bharti Tele-ventures is one of India’s leading private sector telecom operators. Its cellular business, Airtel, is a leading mobile telephony brand. Like any telecom organization, Bharti considers information technology as a key business enabler.  According to Amrita Gangotra, vice – president of Information Technology at Bharti, IT works as a support system as well as a key business driver
The company has a wide area network (WAN) in place with a mix of leased lines and E1 and E3 lines.  The company extends different applications to its dealers and partners through its extranet.  The company also has procured a range of high-end servers from Sun and HP.  The company also has a strong area network (SAN) in place because its daily storage requirements are in tetra bytes. The main data centre is located in Gurgaon, Haryana; Bharti has procured billing, fraud management, revenue assurance and data warehousing software.
The Case for CRM
During the initial stages of its operations, the company’s systems were run manually.  Only 40 per cent of customer issues were getting resolved. The company decided to equip itself with tools that would help in resolving 90 percent of its customer issues.  The company decided to opt for a CRM solution to manage customer expectations and provide them with innovative products and services.
Oracle CRM Platform
Bharti wanted to fulfill its vision of providing the same quality of services anywhere and at any time. The company was particular that its customers should get the same quality of service no matter which of its call centers he or she contacts.  It evaluated many options before choosing its centralized CRM tool.  The factors considered were proper workflow automation, facilitation of knowledge sharing and integration with the billing system. After a thorough evaluation exercise, it decided to go ahead with the Oracle CRM platform.
Rolling out
After the company started its operations in Delhi, it acquired many circles and sought new licenses in other circles.  The CRM tool was implemented immediately whenever it obtained a new license.  However, the company had to put in place a phased migration strategy in the acquired circles, which had an existing subscriber base.  The migration had to be done in such a manner that the existing customer base did not suffer.  The migration was completed in a phased manner by the first quarter of 2004. The biggest challenge for Bharti was to have a unified process in lace.  They also faced the challenge of imparting training.  The company was successfully able to overcome to technical difficulties that it faced during implementation.
The CRM strategy at Bharti revolves around two aspects—operational CRM and analytical CRM. Operational CRM revolves around improving the workflow of call centres and helping them in their day-to-day activities.  Analytical CRM provides staff with the required information on customers and is used for business development
The company has successfully used its CRM solution to provide products tailor-made to the needs of its customers.  Thus, customers receive more value for money.  Customers now have access to different schemes and services depending on airtime usage.  Bharti has also managed to segregate its workflow with the help of the CRM tool.
QUESTIONS:
  1. Why did Bharti Tele-ventures opt for a CRM solution?
  2. What were the challenges faced by Bharti in its CRM implementation process?
  3. Discuss the strategy used by the company for implementing CRM and why.
  4. Explain the various benefit received by Bharti after implementing CRM.
CASE 03: Hotel Valuation Services ( HVS )
Hotel Valuation Services (HVS) was founded in1980 by Steve Rushmore.  It is the world’s leading consulting and services organization focused on the hltel, restaurant, shared ownership, gaming and leisure industries.  Rushmore began his career as a consultant ion the hospitality division of a prominent New York City real estate firm.  He quickly realized that a limited body of knowledge was available to assess the value of hotels.  He founded HVS to fill this perceived gap.
The HVS method of providing an economic study and appraisal for hotels and motels immediately became the industry standard.  HVS is focused on the hotel, restaurant, timeshare, gaming and leisure industries.  The company has more than 300 consultants offering specialized services through its network of 25 offices worldwide.
Studies conducted by HVS indicate that 2010 is going to be a challenging year for the Indian hospitality industry.
Challenges for the Hospitality Sector
The tourism industry is highly susceptible to changes in the macro-environment.  The aviation and hospitality sectors are among the first to get affected by an adverse environment and also the last to recuperate.
The main challenges faced by the hospitality sector in India include lack of infrastructure and facilities, lack of human resources and training, the hotel rating system not being at par with international standards, intense competition from global players and multiplicity of taxes.
HVS Recommendations
HVS has made the following recommendation in order to address the challenges faced by the hotel industry.
  • Grant hotels industry status across India
  • Include tourism as a subject in the Concurrent List of the Constitution of India
  • Grant hotels infrastructure status under Sec 80-IA of IT Act
  • Impose a single uniform luxury tax, based on the actual room tariff only, across all Indian sates
  • Impose uniform tax rates on rooms, food and beverages, and liquor across the country
  • Give incentives, in the form of tax breaks, to re-invested capital in the hotel industry
  • Extend the benefits of Sec 80-ID to other parts of India
  • Develop a more scientific rating system to truly benchmark hotel quality
Hotel Rating Process
Various approaches are used across the globe to classify hotels.  The most common approaches followed are;
Registration:  This involves basic  level listing of properties that meet agreed minimum standards.
Classification: Hotels are classified into various categories based on the amenities offered. All establishments have to follow certain minimum standards.
Grading: Hotels are graded according to the quality of services delivered to customers. Assessment of this nature is highly complex and time consuming.
Hotel Rating System in India: India has been using the “Classification” system with mixed results for over four decades; HVS recommends that the present rating system in India should be upgraded to the “Grading” system to enable it to employ a more discretionary approach to the process.  Hotels, motels and other lodging in India are inspected and categorized according to their products and services by the Hotel and Restaurant Approval and Classification Committee (HRACC), a body instituted by the Ministry of Tourism. However, the checklist used by HRACC has some serious shortcomings.  The minimum standards are too weak and lenient.  Hotels that do not adhere to minimum standards are penalized.  However, benefits are not offered to hotels that offer services above the minimum standards.  The checklist focuses on physical infrastructure alone and is not very effective in assessing the quality of services.
The present system needs a complete overhaul in order to remain relevant in the dynamic market scenario.  Safety and hygiene should be the first parameters in the classification process.  The government should focus on the safety and hygiene parameters than on the commercial aspects of classification.  The HRACC classification should be revamped so that it provides a more accurate indication of a hotel’s quality and services.
Questions:
  1. What are the challenges facing the Indian hospitality industry?
  2. What is HVS? What are the recommendations of HVS mentioned in this case study?
  3. What are the limitations of the present hotel rating system in India?
  4. If you are hired as the consultant, what measures do you suggest to imprve the present hotel rating system in India?
CASE 04: IMPLEMENTING QUALITY MANAGEMENT SYSTEM AT HYUNDAI MOTORS
Hyundai Motors India Limite3d, a 100 per cent subsidiary of the South Korea-based Hyundai Motor Company, started its operations in 1996. In September 1998, Hyundai India started mass production of its well-known hatchback “Santro.” It launched its second model “Accent” in October 1999.  It started establishing its products in the global market in 2000.  It launched its super luxury sedan “Sonata” in July 2001.
As per Hyundai India’s policy, quality simply does not mean meeting specifications.  Quality for Hyundai India means meeting customer requirements and exceeding their expectations.  The Company also concentrates on indirect customers and was the first to introduce MPFI(Multi-point fuel injection) in 1998 for the small car segment, even when the Euro II standards were not  mandatory.  This case study focuses on how Hyundai has been able to successfully adopt the automotive standard QS9000.
QS 9000
QS 9000 is a sector specific common supplier quality standard for the automotive industry.  In 1988, Chrysler Corporation, Ford Motor Company and General Motors Corporation came together to form the Supplier Quality Requirements  Task Force to standardize reference manuals, reporting formats and technical nomenclature for all documents related to supplier requirements.  In 1992, the task force harmonized the fundamental supplier quality systems manuals and assessment tools.  This gave rise to Quality System Requirements QS 9000—a common supplier quality requirements standard that was adopted by all three automotive companies.  It is based on the ISO 9001.  However, it contains additional requirements peculiar to the automotive industry.  Today many automotive companies have adopted QS 9000.
QS 9000 defines the fundamental quality system expectations of Chrysler, Ford, Genera; Motors and other subscribing companies for internal and external suppliers of production and services parts and materials.  QS 9000 is a harmonization of Chrysler’s Supplier Quality Assurance Manual, Ford’s Q-1011 Quality Systems Standard and General Motors’ NAO Targets for Excellence and supersedes all editions of these documents.  The benefits of QS 9000 certification
Include improved quality, improved efficiency, improved delivery and company morale, improved internal and external communication.
The QS 9000 applies to all internal or external, potential or existing suppliers’ vendors/subcontractors of production materials, Production or service Parts, heat-treating, painting, plating, finishing services who supply to OEM ( Original Equipment manufacturers ) customers subscribing to the QS 9000 standard.
QS 9000 is a supplement to ISO 9000 with additional requirements for each ISO 9001.  The standard has undergone two revisions since its inception.  The third edition of QS 9000 standard comprises two primary sections.  Section 1 deals with ISO 9000 – based requirements and sector specific requirements while Section II deals with customer-specific requirements.
QS 9000 at Hyundai
Hyundai India was certified to QS 9000 in January 2002, QS 9000 is a customer-driven automotive standard that focuses on defect prevention, continuous improvement and reduction of wastage or variation in the supply chain, development of sub-contractors, product quality, cost, delivery and service.  It is based on a preventive methodology and uses disciplined problem-solving methods.
Benefits of QS 9000 Certification for Hyundai
After QS 9000 certification, activities were streamlined and a focused approach to planning was established.  A team of professionals started concentrating on solving problems and identifying potential areas of improvement.  The main benefits of QS 9000 were.
  • The attitude of workers improved. They felt encouraged to come out with more ideas on mistake-proofing, defect-prevention, statistical  analysis  of a particular activity, etc.
  • The company was able to identify potential failures of the product and take control measures in time by adoption of Failure Mode and Effect Analysis ( FMEA ).
  • Hyundai was able to measure the customer satisfaction/dissatisfaction levels, whereby they were able to improve products through process control.
  • Hyundai has been able to improve the direct pass ratio of vehicles. The field claims on product have also reduced.
  • Customer complaints were analysed by the auditors at length and they also looked at the corrective and preventive action plan.  By adopting QS 9000, the company has eliminated all unrelated/waste processes, non-value added solutions, thereby focusing only on the customer requirements.
  • Employees could relae to QS 9000, as it was close to their work. The employees became more proactive.
The company also realized the importance of the competence of the certification body in implementing a standard.  The full objective of the standard can be achieved only if the certification body is competent.

Explain the QS 9000 system

Questions:
  1. Why did Hyundai decide to implement the QS 9000 system?
  2. What is the difference between ISO 9000 and QS 9000?
  3. Explain the QS 9000 system.
  4. What were the benefits of QS 9000 implementation at Hyundai? 
CASE 05: Supplier Quality Audit at Tata Motors
Tata Motors Private Limited is a leading manufacturer of trucks in India and India’s largest automobile company.  It is the second-largest manufacturer of passenger vehicles in the World.  The company is the world’s fifth-largest medium and heavy commercial vehicles manufacturer and the world’s second-largest medium and heavy bus manufacturer.
Tata Indica
Ratan Tata, the chairman of Tata Motors, had always dreamed of building the country’s first indigenous small car.  In 1995, the company announced that it planned to build the Tata Indica, a car as spacious as the Ambassador, priced close to the Maruti 800 and shaped like the Zen.  Tata Motors had to face many challenges in the process of designing and building the India.
Outsourcing
Tata Motors had to take its primary make or buy decisions for the key inputs such as design, engine and transmission.  Outsourcing was one of the most difficult aspects of producing the Indica.  The company did not have the expertise either to design a car or to build an engine for it.  It had to create a supplier base from scratch.  The company decided to shop globally for the best deals and use its own expertise to make whatever modifications were needed.  Exhibit 18.1 provides a list of components outsourced for developing the Indica.
Exhibit  18.1 Components Outsourced  by Tata Motors
       Sl.No.                                                   Components                                               Supplier
  1. Five door hatch back                                                                   Idea Italy
  2. Engine                                                                                              Institute Francais, France
  3. Assembly line                                                                                Nissan’s Plant Australia
  4. Presses                                                                                            Mercedes Benz
  5. Pistons and piston rings                                                           India Pistons
  6. Electrical components and fuel  injection systems        Lucas — TVS              
  7. Steering systems                                                                           Rane TRW Steering system
  8. Clutch facings and rear drum brake linings                       Sundaram Brake Linings (SBL)
  9. Seating systems                                                                              Tata – Johnson Controls
  10.     Radiators                                                                                       Tata – Toyo
  11. Rear View Mirrors                                                                         Tata – Ficosa
  12. Front and rear bumper, dash board, inside trims            Tata – Auto Plastics
  13. Air – conditioning kits                                                                  Subros Ltd.
  14. Wind screens and windows                                                        Asahi Glass
  15. Fuel lines                                                                                            Imperial Auto
  16. Differential assemblies                                                                 Sona Koyo Steering
  17.     Sheet metal items                                                                         IBM Tools             
Supplier Quality Audit
After making the make or buy decisions, the next step was to identify the suppliers.  Most of the parts and components were sourced locally.  Only about two per cent of the component value was secured from other global players.  Localization of the components was the most important challenge for the company.  The Indica was totally indigenous.
Tata Motors undertook supplier audits to select and monitor suppliers during the development of the Indica.  Supplier audit is an integral part of the decision process for supplier selection.  It enables guarantees regarding design, manufacturing, system, product, raw material and services.  It also enables answering to regulatory requirements which impose these audits.  A supplier quality audit team was formed with a view to ensuring acceptable supplier quality, which became very critical.  The yardstick employed by the company for selecting suppliers was the ability to supply components at the negotiated quality, cost and quantities.

 

ICMIND DMS ANSWER SHEETS – Explain the QS 9000 system

ICMIND DMS ANSWER SHEETS – Explain the QS 9000 system

 

Explain the QS 9000 system

 The selection of supplier by the team involved following steps:
  • An initial assessment team from Tata Motors evaluated the supplier.
  • Self-evaluation of the supplier based on the format provided by the company.
  • Quality system survey design validation.
  • Manufacturing validation.
  • Product Part Approval Process (PPAP) for certifying the product quality.
Tata Motors also set up Supplier Quality Improvement Teams to improve the vendors’ system to ensure that they produced defect-free parts.  It applied a thirteen – step quality improvement programme covering supplier self-evaluation, through design-validation and audit of supplier quality. Another key to the company’s successful vendor-base was a modern system of process management.  Tata Motor’s target-costing was broken up into vendor – wise cost targets, and the suppliers had to carry out their own value-engineering exercises to lower cost and improve quality.
Questions:
  1. What were the challenges faced by TATA Motors while selecting its suppliers for India?
  2. What were the reasons for setting up a supplier quality team at TATA motors?
  3. What was the approach followed by the supplier quality audit team?
  4. What is the difference between supplier quality audit and third party quality audit?

 

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ICMIND EMBA SOLUTION PAPERS – Discuss the strategy used by the company for implementing CRM and why

ICMIND EMBA SOLUTION PAPERS – Discuss the strategy used by the company for implementing CRM and why

ICMIND EMBA SOLUTION PAPERS – Discuss the strategy used by the company for implementing CRM and why

 

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Total Quality Management

 

 
CASE 01: TPM AT MRC BEARINGS
CASE 02: Customer Relationship Management at Bharti
CASE 03: Hotel Valuation Services ( HVS )
CASE 04: IMPLEMENTING QUALITY MANAGEMENT SYSTEM AT HYUNDAI MOTORS
CASE 05: Supplier Quality Audit at Tata Motors
CASE 01: TPM AT MRC BEARINGS
MRC Bearing, the largest producer of aero-engine bearings in the world, is located in Falconer, New York.  The company is the primary aerospace bearings supplier to General Electric, Pratt—Whitney and Rolls Royce, as well as to the world’s leading military and helicopter programmes Problem Identification.
In 1996, the company realized that it was behind on orders.  Their customers were aggressive in their demands for cost reductions and shorter lead times.  The majority of their maintenance hours were dedicated to emergency work orders.  The company decided to implement a TPM programme in order to achieve a turnaround.  After the implementation of TPM, the company was able to achieve a 98 per cent decrease in unplanned maintenance hours.
TPM Journey
The company started its TPM programme by focusing on a small area, which was critical to processes but was experiencing chronic problems.  At first, a lot of people were skeptical and not really interested in getting involved with the TPM activities.  The company had a core team of people who were excited about TPM.  It also enlisted the help of people outside the organization to work with the core team
TPM at MRC began with a weeklong TPM event. It startd by cleaning, insecting lubricating and performing corrective work on a piece of machinery. Once a machine was cleaned, it would be painted.  At first, people were reluctant to participate in TPM events and ridiculed the TPM programme as “Totally Painted Machines.”  As time elapsed, people started appreciating the improvements brought about by TPM events.  Employees who were totally against TPM started participating in TPM workouts.
MRC  formed equipment improvement teams (EITs) to work on resolving equipment – related issues.  The team initially worked on a piece of equipment with chronic problems.  The equipment was breaking down on a monthly basis and required three or four days each time to fix it.  The team discovered  the original manufacturer had used a sub-spec coupling on a drive unit.  The problem was solved by upgrading to the proper coupling.  The problem was solved by taking the time out to find the root cause of the failures, rather than just fixing the symptoms.  In the years following this repair, the problem was completely eliminated.  That success showed a lot of people in the company that TPM can make everyone’s duly life easier as well as improve productivity.
After the initial success, MRC expanded their TPM efforts to their second facility.  They created a  TPM Steering Committee at their second site and also created  a policy group to co-ordinate the efforts  of both facilities.  MRC trained 10 TPM Area Co-ordinators who undertake TPM activities for one week in each month.  These TPM Co-ordinators organize TPM events in their areas, also lead EITs and make sure the process keeps working.  MRC has begun to create full-time TPM teams.  One such team was able to correct a long-standing equipment problem.  This resulted in reducing the scrap produced by that equipment to almost zero.  The areas that MRCD focused on were.
  1. Preventive maintenance
  2. Putting predictive maintenance process in place (I.e. vibration analysis equipment)
  3. Cleaning the machines, resulting in inspection
  4. Creating standards on the equipment for cleaning, lubrication and daily checks
  5. Collecting data on downtime
  6. Creating equipment improvement teams
  7. Creating TPM area co-coordinators
Lessons Learnt
The most important lesson learnt was that training is the key to being successful with TPM.  The company has organized some initial TPM awareness training programmes for the organization for both operators and mechanics.  However, looking back they could have had achieved success faster if more training had been imparted.  The support of the top management, the union, the hard work of the people at MRC and the support of their customers were the factors instrumental to the success of the TPM initiative.
QUESTIONS:
  1. What were the problems faced by MRC?
  2. What was the solution used to address the problems at MRC?
  3. What were the attributes responsible for the successful implementation of TPM at MRC?
  4. Explain the TPM journey at MRC.
  5. Comment on the statement “TPM is not totally painted machines but taking pride in our machines.”
CASE 02: Customer Relationship Management at Bharti
Bharti Tele-ventures is one of India’s leading private sector telecom operators. Its cellular business, Airtel, is a leading mobile telephony brand. Like any telecom organization, Bharti considers information technology as a key business enabler.  According to Amrita Gangotra, vice – president of Information Technology at Bharti, IT works as a support system as well as a key business driver
The company has a wide area network (WAN) in place with a mix of leased lines and E1 and E3 lines.  The company extends different applications to its dealers and partners through its extranet.  The company also has procured a range of high-end servers from Sun and HP.  The company also has a strong area network (SAN) in place because its daily storage requirements are in tetra bytes. The main data centre is located in Gurgaon, Haryana; Bharti has procured billing, fraud management, revenue assurance and data warehousing software.
The Case for CRM
During the initial stages of its operations, the company’s systems were run manually.  Only 40 per cent of customer issues were getting resolved. The company decided to equip itself with tools that would help in resolving 90 percent of its customer issues.  The company decided to opt for a CRM solution to manage customer expectations and provide them with innovative products and services.
Oracle CRM Platform
Bharti wanted to fulfill its vision of providing the same quality of services anywhere and at any time. The company was particular that its customers should get the same quality of service no matter which of its call centers he or she contacts.  It evaluated many options before choosing its centralized CRM tool.  The factors considered were proper workflow automation, facilitation of knowledge sharing and integration with the billing system. After a thorough evaluation exercise, it decided to go ahead with the Oracle CRM platform.
Rolling out
After the company started its operations in Delhi, it acquired many circles and sought new licenses in other circles.  The CRM tool was implemented immediately whenever it obtained a new license.  However, the company had to put in place a phased migration strategy in the acquired circles, which had an existing subscriber base.  The migration had to be done in such a manner that the existing customer base did not suffer.  The migration was completed in a phased manner by the first quarter of 2004. The biggest challenge for Bharti was to have a unified process in lace.  They also faced the challenge of imparting training.  The company was successfully able to overcome to technical difficulties that it faced during implementation.
The CRM strategy at Bharti revolves around two aspects—operational CRM and analytical CRM. Operational CRM revolves around improving the workflow of call centres and helping them in their day-to-day activities.  Analytical CRM provides staff with the required information on customers and is used for business development
The company has successfully used its CRM solution to provide products tailor-made to the needs of its customers.  Thus, customers receive more value for money.  Customers now have access to different schemes and services depending on airtime usage.  Bharti has also managed to segregate its workflow with the help of the CRM tool.
QUESTIONS:
  1. Why did Bharti Tele-ventures opt for a CRM solution?
  2. What were the challenges faced by Bharti in its CRM implementation process?
  3. Discuss the strategy used by the company for implementing CRM and why.
  4. Explain the various benefit received by Bharti after implementing CRM.
CASE 03: Hotel Valuation Services ( HVS )
Hotel Valuation Services (HVS) was founded in1980 by Steve Rushmore.  It is the world’s leading consulting and services organization focused on the hltel, restaurant, shared ownership, gaming and leisure industries.  Rushmore began his career as a consultant ion the hospitality division of a prominent New York City real estate firm.  He quickly realized that a limited body of knowledge was available to assess the value of hotels.  He founded HVS to fill this perceived gap.
The HVS method of providing an economic study and appraisal for hotels and motels immediately became the industry standard.  HVS is focused on the hotel, restaurant, timeshare, gaming and leisure industries.  The company has more than 300 consultants offering specialized services through its network of 25 offices worldwide.
Studies conducted by HVS indicate that 2010 is going to be a challenging year for the Indian hospitality industry.
Challenges for the Hospitality Sector
The tourism industry is highly susceptible to changes in the macro-environment.  The aviation and hospitality sectors are among the first to get affected by an adverse environment and also the last to recuperate.
The main challenges faced by the hospitality sector in India include lack of infrastructure and facilities, lack of human resources and training, the hotel rating system not being at par with international standards, intense competition from global players and multiplicity of taxes.
HVS Recommendations
HVS has made the following recommendation in order to address the challenges faced by the hotel industry.
  • Grant hotels industry status across India
  • Include tourism as a subject in the Concurrent List of the Constitution of India
  • Grant hotels infrastructure status under Sec 80-IA of IT Act
  • Impose a single uniform luxury tax, based on the actual room tariff only, across all Indian sates
  • Impose uniform tax rates on rooms, food and beverages, and liquor across the country
  • Give incentives, in the form of tax breaks, to re-invested capital in the hotel industry
  • Extend the benefits of Sec 80-ID to other parts of India
  • Develop a more scientific rating system to truly benchmark hotel quality
Hotel Rating Process
Various approaches are used across the globe to classify hotels.  The most common approaches followed are;
Registration:  This involves basic  level listing of properties that meet agreed minimum standards.
Classification: Hotels are classified into various categories based on the amenities offered. All establishments have to follow certain minimum standards.
Grading: Hotels are graded according to the quality of services delivered to customers. Assessment of this nature is highly complex and time consuming.
Hotel Rating System in India: India has been using the “Classification” system with mixed results for over four decades; HVS recommends that the present rating system in India should be upgraded to the “Grading” system to enable it to employ a more discretionary approach to the process.  Hotels, motels and other lodging in India are inspected and categorized according to their products and services by the Hotel and Restaurant Approval and Classification Committee (HRACC), a body instituted by the Ministry of Tourism. However, the checklist used by HRACC has some serious shortcomings.  The minimum standards are too weak and lenient.  Hotels that do not adhere to minimum standards are penalized.  However, benefits are not offered to hotels that offer services above the minimum standards.  The checklist focuses on physical infrastructure alone and is not very effective in assessing the quality of services.
The present system needs a complete overhaul in order to remain relevant in the dynamic market scenario.  Safety and hygiene should be the first parameters in the classification process.  The government should focus on the safety and hygiene parameters than on the commercial aspects of classification.  The HRACC classification should be revamped so that it provides a more accurate indication of a hotel’s quality and services.
Questions:
  1. What are the challenges facing the Indian hospitality industry?
  2. What is HVS? What are the recommendations of HVS mentioned in this case study?
  3. What are the limitations of the present hotel rating system in India?
  4. If you are hired as the consultant, what measures do you suggest to imprve the present hotel rating system in India?
CASE 04: IMPLEMENTING QUALITY MANAGEMENT SYSTEM AT HYUNDAI MOTORS
Hyundai Motors India Limite3d, a 100 per cent subsidiary of the South Korea-based Hyundai Motor Company, started its operations in 1996. In September 1998, Hyundai India started mass production of its well-known hatchback “Santro.” It launched its second model “Accent” in October 1999.  It started establishing its products in the global market in 2000.  It launched its super luxury sedan “Sonata” in July 2001.
As per Hyundai India’s policy, quality simply does not mean meeting specifications.  Quality for Hyundai India means meeting customer requirements and exceeding their expectations.  The Company also concentrates on indirect customers and was the first to introduce MPFI(Multi-point fuel injection) in 1998 for the small car segment, even when the Euro II standards were not  mandatory.  This case study focuses on how Hyundai has been able to successfully adopt the automotive standard QS9000.
QS 9000
QS 9000 is a sector specific common supplier quality standard for the automotive industry.  In 1988, Chrysler Corporation, Ford Motor Company and General Motors Corporation came together to form the Supplier Quality Requirements  Task Force to standardize reference manuals, reporting formats and technical nomenclature for all documents related to supplier requirements.  In 1992, the task force harmonized the fundamental supplier quality systems manuals and assessment tools.  This gave rise to Quality System Requirements QS 9000—a common supplier quality requirements standard that was adopted by all three automotive companies.  It is based on the ISO 9001.  However, it contains additional requirements peculiar to the automotive industry.  Today many automotive companies have adopted QS 9000.
QS 9000 defines the fundamental quality system expectations of Chrysler, Ford, Genera; Motors and other subscribing companies for internal and external suppliers of production and services parts and materials.  QS 9000 is a harmonization of Chrysler’s Supplier Quality Assurance Manual, Ford’s Q-1011 Quality Systems Standard and General Motors’ NAO Targets for Excellence and supersedes all editions of these documents.  The benefits of QS 9000 certification
Include improved quality, improved efficiency, improved delivery and company morale, improved internal and external communication.
The QS 9000 applies to all internal or external, potential or existing suppliers’ vendors/subcontractors of production materials, Production or service Parts, heat-treating, painting, plating, finishing services who supply to OEM ( Original Equipment manufacturers ) customers subscribing to the QS 9000 standard.
QS 9000 is a supplement to ISO 9000 with additional requirements for each ISO 9001.  The standard has undergone two revisions since its inception.  The third edition of QS 9000 standard comprises two primary sections.  Section 1 deals with ISO 9000 – based requirements and sector specific requirements while Section II deals with customer-specific requirements.
QS 9000 at Hyundai
Hyundai India was certified to QS 9000 in January 2002, QS 9000 is a customer-driven automotive standard that focuses on defect prevention, continuous improvement and reduction of wastage or variation in the supply chain, development of sub-contractors, product quality, cost, delivery and service.  It is based on a preventive methodology and uses disciplined problem-solving methods.
Benefits of QS 9000 Certification for Hyundai
After QS 9000 certification, activities were streamlined and a focused approach to planning was established.  A team of professionals started concentrating on solving problems and identifying potential areas of improvement.  The main benefits of QS 9000 were.
  • The attitude of workers improved. They felt encouraged to come out with more ideas on mistake-proofing, defect-prevention, statistical  analysis  of a particular activity, etc.
  • The company was able to identify potential failures of the product and take control measures in time by adoption of Failure Mode and Effect Analysis ( FMEA ).
  • Hyundai was able to measure the customer satisfaction/dissatisfaction levels, whereby they were able to improve products through process control.
  • Hyundai has been able to improve the direct pass ratio of vehicles. The field claims on product have also reduced.
  • Customer complaints were analysed by the auditors at length and they also looked at the corrective and preventive action plan.  By adopting QS 9000, the company has eliminated all unrelated/waste processes, non-value added solutions, thereby focusing only on the customer requirements.
  • Employees could relae to QS 9000, as it was close to their work. The employees became more proactive.
The company also realized the importance of the competence of the certification body in implementing a standard.  The full objective of the standard can be achieved only if the certification body is competent.
Questions:
  1. Why did Hyundai decide to implement the QS 9000 system?
  2. What is the difference between ISO 9000 and QS 9000?
  3. Explain the QS 9000 system.
  4. What were the benefits of QS 9000 implementation at Hyundai? 
CASE 05: Supplier Quality Audit at Tata Motors
Tata Motors Private Limited is a leading manufacturer of trucks in India and India’s largest automobile company.  It is the second-largest manufacturer of passenger vehicles in the World.  The company is the world’s fifth-largest medium and heavy commercial vehicles manufacturer and the world’s second-largest medium and heavy bus manufacturer.
Tata Indica
Ratan Tata, the chairman of Tata Motors, had always dreamed of building the country’s first indigenous small car.  In 1995, the company announced that it planned to build the Tata Indica, a car as spacious as the Ambassador, priced close to the Maruti 800 and shaped like the Zen.  Tata Motors had to face many challenges in the process of designing and building the India.
Outsourcing
Tata Motors had to take its primary make or buy decisions for the key inputs such as design, engine and transmission.  Outsourcing was one of the most difficult aspects of producing the Indica.  The company did not have the expertise either to design a car or to build an engine for it.  It had to create a supplier base from scratch.  The company decided to shop globally for the best deals and use its own expertise to make whatever modifications were needed.  Exhibit 18.1 provides a list of components outsourced for developing the Indica.
Exhibit  18.1 Components Outsourced  by Tata Motors
       Sl.No.                                                   Components                                               Supplier
  1. Five door hatch back                                                                   Idea Italy
  2. Engine                                                                                              Institute Francais, France
  3. Assembly line                                                                                Nissan’s Plant Australia
  4. Presses                                                                                            Mercedes Benz
  5. Pistons and piston rings                                                           India Pistons
  6. Electrical components and fuel  injection systems        Lucas — TVS              
  7. Steering systems                                                                           Rane TRW Steering system
  8. Clutch facings and rear drum brake linings                       Sundaram Brake Linings (SBL)
  9. Seating systems                                                                              Tata – Johnson Controls
  10.     Radiators                                                                                       Tata – Toyo
  11. Rear View Mirrors                                                                         Tata – Ficosa
  12. Front and rear bumper, dash board, inside trims            Tata – Auto Plastics
  13. Air – conditioning kits                                                                  Subros Ltd.
  14. Wind screens and windows                                                        Asahi Glass
  15. Fuel lines                                                                                            Imperial Auto
  16. Differential assemblies                                                                 Sona Koyo Steering
  17.     Sheet metal items                                                                         IBM Tools             
Supplier Quality Audit
After making the make or buy decisions, the next step was to identify the suppliers.  Most of the parts and components were sourced locally.  Only about two per cent of the component value was secured from other global players.  Localization of the components was the most important challenge for the company.  The Indica was totally indigenous.
Tata Motors undertook supplier audits to select and monitor suppliers during the development of the Indica.  Supplier audit is an integral part of the decision process for supplier selection.  It enables guarantees regarding design, manufacturing, system, product, raw material and services.  It also enables answering to regulatory requirements which impose these audits.  A supplier quality audit team was formed with a view to ensuring acceptable supplier quality, which became very critical.  The yardstick employed by the company for selecting suppliers was the ability to supply components at the negotiated quality, cost and quantities.

ICMIND EMBA SOLUTION PAPERS – Discuss the strategy used by the company for implementing CRM and why

ICMIND EMBA SOLUTION PAPERS – Discuss the strategy used by the company for implementing CRM and why

implementing CRM

 

 The selection of supplier by the team involved following steps:
  • An initial assessment team from Tata Motors evaluated the supplier.
  • Self-evaluation of the supplier based on the format provided by the company.
  • Quality system survey design validation.
  • Manufacturing validation.
  • Product Part Approval Process (PPAP) for certifying the product quality.
Tata Motors also set up Supplier Quality Improvement Teams to improve the vendors’ system to ensure that they produced defect-free parts.  It applied a thirteen – step quality improvement programme covering supplier self-evaluation, through design-validation and audit of supplier quality. Another key to the company’s successful vendor-base was a modern system of process management.  Tata Motor’s target-costing was broken up into vendor – wise cost targets, and the suppliers had to carry out their own value-engineering exercises to lower cost and improve quality.
Questions:
  1. What were the challenges faced by TATA Motors while selecting its suppliers for India?
  2. What were the reasons for setting up a supplier quality team at TATA motors?
  3. What was the approach followed by the supplier quality audit team?
  4. What is the difference between supplier quality audit and third party quality audit?

 

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ICMIND MBA CASE STUDY SOLUTIONS – Comment on the statement “TPM is not totally painted machines but taking pride in our machines

ICMIND MBA CASE STUDY SOLUTIONS – Comment on the statement “TPM is not totally painted machines but taking pride in our machines

ICMIND MBA CASE STUDY SOLUTIONS – Comment on the statement “TPM is not totally painted machines but taking pride in our machines

 

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Total Quality Management

 

 
CASE 01: TPM AT MRC BEARINGS
CASE 02: Customer Relationship Management at Bharti
CASE 03: Hotel Valuation Services ( HVS )
CASE 04: IMPLEMENTING QUALITY MANAGEMENT SYSTEM AT HYUNDAI MOTORS
CASE 05: Supplier Quality Audit at Tata Motors
CASE 01: TPM AT MRC BEARINGS
MRC Bearing, the largest producer of aero-engine bearings in the world, is located in Falconer, New York.  The company is the primary aerospace bearings supplier to General Electric, Pratt—Whitney and Rolls Royce, as well as to the world’s leading military and helicopter programmes Problem Identification.
In 1996, the company realized that it was behind on orders.  Their customers were aggressive in their demands for cost reductions and shorter lead times.  The majority of their maintenance hours were dedicated to emergency work orders.  The company decided to implement a TPM programme in order to achieve a turnaround.  After the implementation of TPM, the company was able to achieve a 98 per cent decrease in unplanned maintenance hours.
TPM Journey
The company started its TPM programme by focusing on a small area, which was critical to processes but was experiencing chronic problems.  At first, a lot of people were skeptical and not really interested in getting involved with the TPM activities.  The company had a core team of people who were excited about TPM.  It also enlisted the help of people outside the organization to work with the core team
TPM at MRC began with a weeklong TPM event. It startd by cleaning, insecting lubricating and performing corrective work on a piece of machinery. Once a machine was cleaned, it would be painted.  At first, people were reluctant to participate in TPM events and ridiculed the TPM programme as “Totally Painted Machines.”  As time elapsed, people started appreciating the improvements brought about by TPM events.  Employees who were totally against TPM started participating in TPM workouts.
MRC  formed equipment improvement teams (EITs) to work on resolving equipment – related issues.  The team initially worked on a piece of equipment with chronic problems.  The equipment was breaking down on a monthly basis and required three or four days each time to fix it.  The team discovered  the original manufacturer had used a sub-spec coupling on a drive unit.  The problem was solved by upgrading to the proper coupling.  The problem was solved by taking the time out to find the root cause of the failures, rather than just fixing the symptoms.  In the years following this repair, the problem was completely eliminated.  That success showed a lot of people in the company that TPM can make everyone’s duly life easier as well as improve productivity.
After the initial success, MRC expanded their TPM efforts to their second facility.  They created a  TPM Steering Committee at their second site and also created  a policy group to co-ordinate the efforts  of both facilities.  MRC trained 10 TPM Area Co-ordinators who undertake TPM activities for one week in each month.  These TPM Co-ordinators organize TPM events in their areas, also lead EITs and make sure the process keeps working.  MRC has begun to create full-time TPM teams.  One such team was able to correct a long-standing equipment problem.  This resulted in reducing the scrap produced by that equipment to almost zero.  The areas that MRCD focused on were.
  1. Preventive maintenance
  2. Putting predictive maintenance process in place (I.e. vibration analysis equipment)
  3. Cleaning the machines, resulting in inspection
  4. Creating standards on the equipment for cleaning, lubrication and daily checks
  5. Collecting data on downtime
  6. Creating equipment improvement teams
  7. Creating TPM area co-coordinators
Lessons Learnt
The most important lesson learnt was that training is the key to being successful with TPM.  The company has organized some initial TPM awareness training programmes for the organization for both operators and mechanics.  However, looking back they could have had achieved success faster if more training had been imparted.  The support of the top management, the union, the hard work of the people at MRC and the support of their customers were the factors instrumental to the success of the TPM initiative.
QUESTIONS:
  1. What were the problems faced by MRC?
  2. What was the solution used to address the problems at MRC?
  3. What were the attributes responsible for the successful implementation of TPM at MRC?
  4. Explain the TPM journey at MRC.
  5. Comment on the statement “TPM is not totally painted machines but taking pride in our machines.”
CASE 02: Customer Relationship Management at Bharti
Bharti Tele-ventures is one of India’s leading private sector telecom operators. Its cellular business, Airtel, is a leading mobile telephony brand. Like any telecom organization, Bharti considers information technology as a key business enabler.  According to Amrita Gangotra, vice – president of Information Technology at Bharti, IT works as a support system as well as a key business driver
The company has a wide area network (WAN) in place with a mix of leased lines and E1 and E3 lines.  The company extends different applications to its dealers and partners through its extranet.  The company also has procured a range of high-end servers from Sun and HP.  The company also has a strong area network (SAN) in place because its daily storage requirements are in tetra bytes. The main data centre is located in Gurgaon, Haryana; Bharti has procured billing, fraud management, revenue assurance and data warehousing software.
The Case for CRM
During the initial stages of its operations, the company’s systems were run manually.  Only 40 per cent of customer issues were getting resolved. The company decided to equip itself with tools that would help in resolving 90 percent of its customer issues.  The company decided to opt for a CRM solution to manage customer expectations and provide them with innovative products and services.
Oracle CRM Platform
Bharti wanted to fulfill its vision of providing the same quality of services anywhere and at any time. The company was particular that its customers should get the same quality of service no matter which of its call centers he or she contacts.  It evaluated many options before choosing its centralized CRM tool.  The factors considered were proper workflow automation, facilitation of knowledge sharing and integration with the billing system. After a thorough evaluation exercise, it decided to go ahead with the Oracle CRM platform.
Rolling out
After the company started its operations in Delhi, it acquired many circles and sought new licenses in other circles.  The CRM tool was implemented immediately whenever it obtained a new license.  However, the company had to put in place a phased migration strategy in the acquired circles, which had an existing subscriber base.  The migration had to be done in such a manner that the existing customer base did not suffer.  The migration was completed in a phased manner by the first quarter of 2004. The biggest challenge for Bharti was to have a unified process in lace.  They also faced the challenge of imparting training.  The company was successfully able to overcome to technical difficulties that it faced during implementation.
The CRM strategy at Bharti revolves around two aspects—operational CRM and analytical CRM. Operational CRM revolves around improving the workflow of call centres and helping them in their day-to-day activities.  Analytical CRM provides staff with the required information on customers and is used for business development
The company has successfully used its CRM solution to provide products tailor-made to the needs of its customers.  Thus, customers receive more value for money.  Customers now have access to different schemes and services depending on airtime usage.  Bharti has also managed to segregate its workflow with the help of the CRM tool.
QUESTIONS:
  1. Why did Bharti Tele-ventures opt for a CRM solution?
  2. What were the challenges faced by Bharti in its CRM implementation process?
  3. Discuss the strategy used by the company for implementing CRM and why.
  4. Explain the various benefit received by Bharti after implementing CRM.
CASE 03: Hotel Valuation Services ( HVS )
Hotel Valuation Services (HVS) was founded in1980 by Steve Rushmore.  It is the world’s leading consulting and services organization focused on the hltel, restaurant, shared ownership, gaming and leisure industries.  Rushmore began his career as a consultant ion the hospitality division of a prominent New York City real estate firm.  He quickly realized that a limited body of knowledge was available to assess the value of hotels.  He founded HVS to fill this perceived gap.
The HVS method of providing an economic study and appraisal for hotels and motels immediately became the industry standard.  HVS is focused on the hotel, restaurant, timeshare, gaming and leisure industries.  The company has more than 300 consultants offering specialized services through its network of 25 offices worldwide.
Studies conducted by HVS indicate that 2010 is going to be a challenging year for the Indian hospitality industry.
Challenges for the Hospitality Sector
The tourism industry is highly susceptible to changes in the macro-environment.  The aviation and hospitality sectors are among the first to get affected by an adverse environment and also the last to recuperate.
The main challenges faced by the hospitality sector in India include lack of infrastructure and facilities, lack of human resources and training, the hotel rating system not being at par with international standards, intense competition from global players and multiplicity of taxes.
HVS Recommendations
HVS has made the following recommendation in order to address the challenges faced by the hotel industry.
  • Grant hotels industry status across India
  • Include tourism as a subject in the Concurrent List of the Constitution of India
  • Grant hotels infrastructure status under Sec 80-IA of IT Act
  • Impose a single uniform luxury tax, based on the actual room tariff only, across all Indian sates
  • Impose uniform tax rates on rooms, food and beverages, and liquor across the country
  • Give incentives, in the form of tax breaks, to re-invested capital in the hotel industry
  • Extend the benefits of Sec 80-ID to other parts of India
  • Develop a more scientific rating system to truly benchmark hotel quality
Hotel Rating Process
Various approaches are used across the globe to classify hotels.  The most common approaches followed are;
Registration:  This involves basic  level listing of properties that meet agreed minimum standards.
Classification: Hotels are classified into various categories based on the amenities offered. All establishments have to follow certain minimum standards.
Grading: Hotels are graded according to the quality of services delivered to customers. Assessment of this nature is highly complex and time consuming.
Hotel Rating System in India: India has been using the “Classification” system with mixed results for over four decades; HVS recommends that the present rating system in India should be upgraded to the “Grading” system to enable it to employ a more discretionary approach to the process.  Hotels, motels and other lodging in India are inspected and categorized according to their products and services by the Hotel and Restaurant Approval and Classification Committee (HRACC), a body instituted by the Ministry of Tourism. However, the checklist used by HRACC has some serious shortcomings.  The minimum standards are too weak and lenient.  Hotels that do not adhere to minimum standards are penalized.  However, benefits are not offered to hotels that offer services above the minimum standards.  The checklist focuses on physical infrastructure alone and is not very effective in assessing the quality of services.
The present system needs a complete overhaul in order to remain relevant in the dynamic market scenario.  Safety and hygiene should be the first parameters in the classification process.  The government should focus on the safety and hygiene parameters than on the commercial aspects of classification.  The HRACC classification should be revamped so that it provides a more accurate indication of a hotel’s quality and services.
Questions:
  1. What are the challenges facing the Indian hospitality industry?
  2. What is HVS? What are the recommendations of HVS mentioned in this case study?
  3. What are the limitations of the present hotel rating system in India?
  4. If you are hired as the consultant, what measures do you suggest to imprve the present hotel rating system in India?
CASE 04: IMPLEMENTING QUALITY MANAGEMENT SYSTEM AT HYUNDAI MOTORS
Hyundai Motors India Limite3d, a 100 per cent subsidiary of the South Korea-based Hyundai Motor Company, started its operations in 1996. In September 1998, Hyundai India started mass production of its well-known hatchback “Santro.” It launched its second model “Accent” in October 1999.  It started establishing its products in the global market in 2000.  It launched its super luxury sedan “Sonata” in July 2001.
As per Hyundai India’s policy, quality simply does not mean meeting specifications.  Quality for Hyundai India means meeting customer requirements and exceeding their expectations.  The Company also concentrates on indirect customers and was the first to introduce MPFI(Multi-point fuel injection) in 1998 for the small car segment, even when the Euro II standards were not  mandatory.  This case study focuses on how Hyundai has been able to successfully adopt the automotive standard QS9000.
QS 9000
QS 9000 is a sector specific common supplier quality standard for the automotive industry.  In 1988, Chrysler Corporation, Ford Motor Company and General Motors Corporation came together to form the Supplier Quality Requirements  Task Force to standardize reference manuals, reporting formats and technical nomenclature for all documents related to supplier requirements.  In 1992, the task force harmonized the fundamental supplier quality systems manuals and assessment tools.  This gave rise to Quality System Requirements QS 9000—a common supplier quality requirements standard that was adopted by all three automotive companies.  It is based on the ISO 9001.  However, it contains additional requirements peculiar to the automotive industry.  Today many automotive companies have adopted QS 9000.
QS 9000 defines the fundamental quality system expectations of Chrysler, Ford, Genera; Motors and other subscribing companies for internal and external suppliers of production and services parts and materials.  QS 9000 is a harmonization of Chrysler’s Supplier Quality Assurance Manual, Ford’s Q-1011 Quality Systems Standard and General Motors’ NAO Targets for Excellence and supersedes all editions of these documents.  The benefits of QS 9000 certification
Include improved quality, improved efficiency, improved delivery and company morale, improved internal and external communication.
The QS 9000 applies to all internal or external, potential or existing suppliers’ vendors/subcontractors of production materials, Production or service Parts, heat-treating, painting, plating, finishing services who supply to OEM ( Original Equipment manufacturers ) customers subscribing to the QS 9000 standard.
QS 9000 is a supplement to ISO 9000 with additional requirements for each ISO 9001.  The standard has undergone two revisions since its inception.  The third edition of QS 9000 standard comprises two primary sections.  Section 1 deals with ISO 9000 – based requirements and sector specific requirements while Section II deals with customer-specific requirements.
QS 9000 at Hyundai
Hyundai India was certified to QS 9000 in January 2002, QS 9000 is a customer-driven automotive standard that focuses on defect prevention, continuous improvement and reduction of wastage or variation in the supply chain, development of sub-contractors, product quality, cost, delivery and service.  It is based on a preventive methodology and uses disciplined problem-solving methods.
Benefits of QS 9000 Certification for Hyundai
After QS 9000 certification, activities were streamlined and a focused approach to planning was established.  A team of professionals started concentrating on solving problems and identifying potential areas of improvement.  The main benefits of QS 9000 were.
  • The attitude of workers improved. They felt encouraged to come out with more ideas on mistake-proofing, defect-prevention, statistical  analysis  of a particular activity, etc.
  • The company was able to identify potential failures of the product and take control measures in time by adoption of Failure Mode and Effect Analysis ( FMEA ).
  • Hyundai was able to measure the customer satisfaction/dissatisfaction levels, whereby they were able to improve products through process control.
  • Hyundai has been able to improve the direct pass ratio of vehicles. The field claims on product have also reduced.
  • Customer complaints were analysed by the auditors at length and they also looked at the corrective and preventive action plan.  By adopting QS 9000, the company has eliminated all unrelated/waste processes, non-value added solutions, thereby focusing only on the customer requirements.
  • Employees could relae to QS 9000, as it was close to their work. The employees became more proactive.
The company also realized the importance of the competence of the certification body in implementing a standard.  The full objective of the standard can be achieved only if the certification body is competent.
Questions:
  1. Why did Hyundai decide to implement the QS 9000 system?
  2. What is the difference between ISO 9000 and QS 9000?
  3. Explain the QS 9000 system.
  4. What were the benefits of QS 9000 implementation at Hyundai? 
CASE 05: Supplier Quality Audit at Tata Motors
Tata Motors Private Limited is a leading manufacturer of trucks in India and India’s largest automobile company.  It is the second-largest manufacturer of passenger vehicles in the World.  The company is the world’s fifth-largest medium and heavy commercial vehicles manufacturer and the world’s second-largest medium and heavy bus manufacturer.
Tata Indica
Ratan Tata, the chairman of Tata Motors, had always dreamed of building the country’s first indigenous small car.  In 1995, the company announced that it planned to build the Tata Indica, a car as spacious as the Ambassador, priced close to the Maruti 800 and shaped like the Zen.  Tata Motors had to face many challenges in the process of designing and building the India.
Outsourcing
Tata Motors had to take its primary make or buy decisions for the key inputs such as design, engine and transmission.  Outsourcing was one of the most difficult aspects of producing the Indica.  The company did not have the expertise either to design a car or to build an engine for it.  It had to create a supplier base from scratch.  The company decided to shop globally for the best deals and use its own expertise to make whatever modifications were needed.  Exhibit 18.1 provides a list of components outsourced for developing the Indica.
Exhibit  18.1 Components Outsourced  by Tata Motors
       Sl.No.                                                   Components                                               Supplier
  1. Five door hatch back                                                                   Idea Italy
  2. Engine                                                                                              Institute Francais, France
  3. Assembly line                                                                                Nissan’s Plant Australia
  4. Presses                                                                                            Mercedes Benz
  5. Pistons and piston rings                                                           India Pistons
  6. Electrical components and fuel  injection systems        Lucas — TVS              
  7. Steering systems                                                                           Rane TRW Steering system
  8. Clutch facings and rear drum brake linings                       Sundaram Brake Linings (SBL)
  9. Seating systems                                                                              Tata – Johnson Controls
  10.     Radiators                                                                                       Tata – Toyo
  11. Rear View Mirrors                                                                         Tata – Ficosa
  12. Front and rear bumper, dash board, inside trims            Tata – Auto Plastics
  13. Air – conditioning kits                                                                  Subros Ltd.
  14. Wind screens and windows                                                        Asahi Glass
  15. Fuel lines                                                                                            Imperial Auto
  16. Differential assemblies                                                                 Sona Koyo Steering
  17.     Sheet metal items                                                                         IBM Tools             
Supplier Quality Audit
After making the make or buy decisions, the next step was to identify the suppliers.  Most of the parts and components were sourced locally.  Only about two per cent of the component value was secured from other global players.  Localization of the components was the most important challenge for the company.  The Indica was totally indigenous.
Tata Motors undertook supplier audits to select and monitor suppliers during the development of the Indica.  Supplier audit is an integral part of the decision process for supplier selection.  It enables guarantees regarding design, manufacturing, system, product, raw material and services.  It also enables answering to regulatory requirements which impose these audits.  A supplier quality audit team was formed with a view to ensuring acceptable supplier quality, which became very critical.  The yardstick employed by the company for selecting suppliers was the ability to supply components at the negotiated quality, cost and quantities.

ICMIND MBA CASE STUDY SOLUTIONS – Comment on the statement “TPM is not totally painted machines but taking pride in our machines

ICMIND MBA CASE STUDY SOLUTIONS – Comment on the statement “TPM is not totally painted machines but taking pride in our machines

totally painted machines

 The selection of supplier by the team involved following steps:
  • An initial assessment team from Tata Motors evaluated the supplier.
  • Self-evaluation of the supplier based on the format provided by the company.
  • Quality system survey design validation.
  • Manufacturing validation.
  • Product Part Approval Process (PPAP) for certifying the product quality.
Tata Motors also set up Supplier Quality Improvement Teams to improve the vendors’ system to ensure that they produced defect-free parts.  It applied a thirteen – step quality improvement programme covering supplier self-evaluation, through design-validation and audit of supplier quality. Another key to the company’s successful vendor-base was a modern system of process management.  Tata Motor’s target-costing was broken up into vendor – wise cost targets, and the suppliers had to carry out their own value-engineering exercises to lower cost and improve quality.
Questions:
  1. What were the challenges faced by TATA Motors while selecting its suppliers for India?
  2. What were the reasons for setting up a supplier quality team at TATA motors?
  3. What was the approach followed by the supplier quality audit team?
  4. What is the difference between supplier quality audit and third party quality audit?

 

 

 Welcome to Answer sheets
 
We at Answer sheets offer all types of online academic assistance, be it homework help, coursework help, case study help, Assignment help, Project Reports, Thesis, Research paper writing help.
And for each service, each subject and each topic, we dedicate an expert writer who has knowledge in that specific field of study. Experience impeccable academic writing service like never before.
Our experts understand that the time of the customers is very precious. The professors of universities and colleges are very rigorous about the submission deadlines of projects or assignments. Hence, the key objective of our case study help service is to deliver the assignments to the customers even before the promised submission deadlines.
We keep the quality measures for all papers which mean we will provide best essays. Our editing services are also excellent. Before submitting any essays, we will check whether the papers writer well or not. The high standards of academic writing will exceed your expectations. With our quality service, we have satisfied more number of people across the world and also work with different universities in Australia, UK, USA, Dubai, Oman, etc.
At our Answer sheets services, our experts are familiar about the formatting styles that are followed in the academic world. Our experts have a great knowledge about the formatting styles such as MLA, Harvard, APA, Turabian, and many others. All types of formats for the case study help are available at our case study help services. In addition, our experts can solve the case studies as per the instructions of the customers.
The experts of our Answer sheets services are highly qualified and professional. We have CAs CFAs & PhD on our panel who have years of experience in the writing of case study / Assignments.
At our Answer sheets services, our experts never plagiarize the content from the other sources for the solutions of case studies. We have strict policies regarding plagiarism at our organization. We have never faced any complaint so far regarding plagiarism from our customers. We use new technologies and modern plagiarism checking software’s to detect plagiarism from our papers.
 
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The experts of our Answer sheets services are highly qualified and professional. We have CAs CFAs & PhD on our panel who have years of experience in the writing of case study. In addition, our experts have the expertise of how a case study should be done by using the information that is mentioned in the case study. All the experts of case study help services are competent and they have all the skills that are required in order to solve a case study. A case study that is solved by our experts looks professional and will surely fetch great grades.
 
O % Plagiarism
At our Answer sheets services, our experts never plagiarize the content from the other sources for the solutions of case studies. We have strict policies regarding plagiarism at our organization. We have never faced any complaint so far regarding plagiarism from our customers. We use new technologies and modern plagiarism checking software’s to detect plagiarism from our papers.
 
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ICMIND ANSWER SHEETS – Bharti Tele-ventures is one of India’s leading private sector telecom operators. Its cellular business, Airtel, is a leading mobile telephony brand

ICMIND ANSWER SHEETS – Bharti Tele-ventures is one of India’s leading private sector telecom operators. Its cellular business, Airtel, is a leading mobile telephony brand

ICMIND ANSWER SHEETS – Bharti Tele-ventures is one of India’s leading private sector telecom operators. Its cellular business, Airtel, is a leading mobile telephony brand

 

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Total Quality Management

 

 
CASE 01: TPM AT MRC BEARINGS
CASE 02: Customer Relationship Management at Bharti
CASE 03: Hotel Valuation Services ( HVS )
CASE 04: IMPLEMENTING QUALITY MANAGEMENT SYSTEM AT HYUNDAI MOTORS
CASE 05: Supplier Quality Audit at Tata Motors
CASE 01: TPM AT MRC BEARINGS
MRC Bearing, the largest producer of aero-engine bearings in the world, is located in Falconer, New York.  The company is the primary aerospace bearings supplier to General Electric, Pratt—Whitney and Rolls Royce, as well as to the world’s leading military and helicopter programmes Problem Identification.
In 1996, the company realized that it was behind on orders.  Their customers were aggressive in their demands for cost reductions and shorter lead times.  The majority of their maintenance hours were dedicated to emergency work orders.  The company decided to implement a TPM programme in order to achieve a turnaround.  After the implementation of TPM, the company was able to achieve a 98 per cent decrease in unplanned maintenance hours.
TPM Journey
The company started its TPM programme by focusing on a small area, which was critical to processes but was experiencing chronic problems.  At first, a lot of people were skeptical and not really interested in getting involved with the TPM activities.  The company had a core team of people who were excited about TPM.  It also enlisted the help of people outside the organization to work with the core team
TPM at MRC began with a weeklong TPM event. It startd by cleaning, insecting lubricating and performing corrective work on a piece of machinery. Once a machine was cleaned, it would be painted.  At first, people were reluctant to participate in TPM events and ridiculed the TPM programme as “Totally Painted Machines.”  As time elapsed, people started appreciating the improvements brought about by TPM events.  Employees who were totally against TPM started participating in TPM workouts.
MRC  formed equipment improvement teams (EITs) to work on resolving equipment – related issues.  The team initially worked on a piece of equipment with chronic problems.  The equipment was breaking down on a monthly basis and required three or four days each time to fix it.  The team discovered  the original manufacturer had used a sub-spec coupling on a drive unit.  The problem was solved by upgrading to the proper coupling.  The problem was solved by taking the time out to find the root cause of the failures, rather than just fixing the symptoms.  In the years following this repair, the problem was completely eliminated.  That success showed a lot of people in the company that TPM can make everyone’s duly life easier as well as improve productivity.
After the initial success, MRC expanded their TPM efforts to their second facility.  They created a  TPM Steering Committee at their second site and also created  a policy group to co-ordinate the efforts  of both facilities.  MRC trained 10 TPM Area Co-ordinators who undertake TPM activities for one week in each month.  These TPM Co-ordinators organize TPM events in their areas, also lead EITs and make sure the process keeps working.  MRC has begun to create full-time TPM teams.  One such team was able to correct a long-standing equipment problem.  This resulted in reducing the scrap produced by that equipment to almost zero.  The areas that MRCD focused on were.
  1. Preventive maintenance
  2. Putting predictive maintenance process in place (I.e. vibration analysis equipment)
  3. Cleaning the machines, resulting in inspection
  4. Creating standards on the equipment for cleaning, lubrication and daily checks
  5. Collecting data on downtime
  6. Creating equipment improvement teams
  7. Creating TPM area co-coordinators
Lessons Learnt
The most important lesson learnt was that training is the key to being successful with TPM.  The company has organized some initial TPM awareness training programmes for the organization for both operators and mechanics.  However, looking back they could have had achieved success faster if more training had been imparted.  The support of the top management, the union, the hard work of the people at MRC and the support of their customers were the factors instrumental to the success of the TPM initiative.
QUESTIONS:
  1. What were the problems faced by MRC?
  2. What was the solution used to address the problems at MRC?
  3. What were the attributes responsible for the successful implementation of TPM at MRC?
  4. Explain the TPM journey at MRC.
  5. Comment on the statement “TPM is not totally painted machines but taking pride in our machines.”
CASE 02: Customer Relationship Management at Bharti
Bharti Tele-ventures is one of India’s leading private sector telecom operators. Its cellular business, Airtel, is a leading mobile telephony brand. Like any telecom organization, Bharti considers information technology as a key business enabler.  According to Amrita Gangotra, vice – president of Information Technology at Bharti, IT works as a support system as well as a key business driver
The company has a wide area network (WAN) in place with a mix of leased lines and E1 and E3 lines.  The company extends different applications to its dealers and partners through its extranet.  The company also has procured a range of high-end servers from Sun and HP.  The company also has a strong area network (SAN) in place because its daily storage requirements are in tetra bytes. The main data centre is located in Gurgaon, Haryana; Bharti has procured billing, fraud management, revenue assurance and data warehousing software.
The Case for CRM
During the initial stages of its operations, the company’s systems were run manually.  Only 40 per cent of customer issues were getting resolved. The company decided to equip itself with tools that would help in resolving 90 percent of its customer issues.  The company decided to opt for a CRM solution to manage customer expectations and provide them with innovative products and services.
Oracle CRM Platform
Bharti wanted to fulfill its vision of providing the same quality of services anywhere and at any time. The company was particular that its customers should get the same quality of service no matter which of its call centers he or she contacts.  It evaluated many options before choosing its centralized CRM tool.  The factors considered were proper workflow automation, facilitation of knowledge sharing and integration with the billing system. After a thorough evaluation exercise, it decided to go ahead with the Oracle CRM platform.
Rolling out
After the company started its operations in Delhi, it acquired many circles and sought new licenses in other circles.  The CRM tool was implemented immediately whenever it obtained a new license.  However, the company had to put in place a phased migration strategy in the acquired circles, which had an existing subscriber base.  The migration had to be done in such a manner that the existing customer base did not suffer.  The migration was completed in a phased manner by the first quarter of 2004. The biggest challenge for Bharti was to have a unified process in lace.  They also faced the challenge of imparting training.  The company was successfully able to overcome to technical difficulties that it faced during implementation.
The CRM strategy at Bharti revolves around two aspects—operational CRM and analytical CRM. Operational CRM revolves around improving the workflow of call centres and helping them in their day-to-day activities.  Analytical CRM provides staff with the required information on customers and is used for business development
The company has successfully used its CRM solution to provide products tailor-made to the needs of its customers.  Thus, customers receive more value for money.  Customers now have access to different schemes and services depending on airtime usage.  Bharti has also managed to segregate its workflow with the help of the CRM tool.
QUESTIONS:
  1. Why did Bharti Tele-ventures opt for a CRM solution?
  2. What were the challenges faced by Bharti in its CRM implementation process?
  3. Discuss the strategy used by the company for implementing CRM and why.
  4. Explain the various benefit received by Bharti after implementing CRM.
CASE 03: Hotel Valuation Services ( HVS )
Hotel Valuation Services (HVS) was founded in1980 by Steve Rushmore.  It is the world’s leading consulting and services organization focused on the hltel, restaurant, shared ownership, gaming and leisure industries.  Rushmore began his career as a consultant ion the hospitality division of a prominent New York City real estate firm.  He quickly realized that a limited body of knowledge was available to assess the value of hotels.  He founded HVS to fill this perceived gap.
The HVS method of providing an economic study and appraisal for hotels and motels immediately became the industry standard.  HVS is focused on the hotel, restaurant, timeshare, gaming and leisure industries.  The company has more than 300 consultants offering specialized services through its network of 25 offices worldwide.
Studies conducted by HVS indicate that 2010 is going to be a challenging year for the Indian hospitality industry.
Challenges for the Hospitality Sector
The tourism industry is highly susceptible to changes in the macro-environment.  The aviation and hospitality sectors are among the first to get affected by an adverse environment and also the last to recuperate.
The main challenges faced by the hospitality sector in India include lack of infrastructure and facilities, lack of human resources and training, the hotel rating system not being at par with international standards, intense competition from global players and multiplicity of taxes.
HVS Recommendations
HVS has made the following recommendation in order to address the challenges faced by the hotel industry.
  • Grant hotels industry status across India
  • Include tourism as a subject in the Concurrent List of the Constitution of India
  • Grant hotels infrastructure status under Sec 80-IA of IT Act
  • Impose a single uniform luxury tax, based on the actual room tariff only, across all Indian sates
  • Impose uniform tax rates on rooms, food and beverages, and liquor across the country
  • Give incentives, in the form of tax breaks, to re-invested capital in the hotel industry
  • Extend the benefits of Sec 80-ID to other parts of India
  • Develop a more scientific rating system to truly benchmark hotel quality
Hotel Rating Process
Various approaches are used across the globe to classify hotels.  The most common approaches followed are;
Registration:  This involves basic  level listing of properties that meet agreed minimum standards.
Classification: Hotels are classified into various categories based on the amenities offered. All establishments have to follow certain minimum standards.
Grading: Hotels are graded according to the quality of services delivered to customers. Assessment of this nature is highly complex and time consuming.
Hotel Rating System in India: India has been using the “Classification” system with mixed results for over four decades; HVS recommends that the present rating system in India should be upgraded to the “Grading” system to enable it to employ a more discretionary approach to the process.  Hotels, motels and other lodging in India are inspected and categorized according to their products and services by the Hotel and Restaurant Approval and Classification Committee (HRACC), a body instituted by the Ministry of Tourism. However, the checklist used by HRACC has some serious shortcomings.  The minimum standards are too weak and lenient.  Hotels that do not adhere to minimum standards are penalized.  However, benefits are not offered to hotels that offer services above the minimum standards.  The checklist focuses on physical infrastructure alone and is not very effective in assessing the quality of services.
The present system needs a complete overhaul in order to remain relevant in the dynamic market scenario.  Safety and hygiene should be the first parameters in the classification process.  The government should focus on the safety and hygiene parameters than on the commercial aspects of classification.  The HRACC classification should be revamped so that it provides a more accurate indication of a hotel’s quality and services.
Questions:
  1. What are the challenges facing the Indian hospitality industry?
  2. What is HVS? What are the recommendations of HVS mentioned in this case study?
  3. What are the limitations of the present hotel rating system in India?
  4. If you are hired as the consultant, what measures do you suggest to imprve the present hotel rating system in India?
CASE 04: IMPLEMENTING QUALITY MANAGEMENT SYSTEM AT HYUNDAI MOTORS
Hyundai Motors India Limite3d, a 100 per cent subsidiary of the South Korea-based Hyundai Motor Company, started its operations in 1996. In September 1998, Hyundai India started mass production of its well-known hatchback “Santro.” It launched its second model “Accent” in October 1999.  It started establishing its products in the global market in 2000.  It launched its super luxury sedan “Sonata” in July 2001.
As per Hyundai India’s policy, quality simply does not mean meeting specifications.  Quality for Hyundai India means meeting customer requirements and exceeding their expectations.  The Company also concentrates on indirect customers and was the first to introduce MPFI(Multi-point fuel injection) in 1998 for the small car segment, even when the Euro II standards were not  mandatory.  This case study focuses on how Hyundai has been able to successfully adopt the automotive standard QS9000.
QS 9000
QS 9000 is a sector specific common supplier quality standard for the automotive industry.  In 1988, Chrysler Corporation, Ford Motor Company and General Motors Corporation came together to form the Supplier Quality Requirements  Task Force to standardize reference manuals, reporting formats and technical nomenclature for all documents related to supplier requirements.  In 1992, the task force harmonized the fundamental supplier quality systems manuals and assessment tools.  This gave rise to Quality System Requirements QS 9000—a common supplier quality requirements standard that was adopted by all three automotive companies.  It is based on the ISO 9001.  However, it contains additional requirements peculiar to the automotive industry.  Today many automotive companies have adopted QS 9000.
QS 9000 defines the fundamental quality system expectations of Chrysler, Ford, Genera; Motors and other subscribing companies for internal and external suppliers of production and services parts and materials.  QS 9000 is a harmonization of Chrysler’s Supplier Quality Assurance Manual, Ford’s Q-1011 Quality Systems Standard and General Motors’ NAO Targets for Excellence and supersedes all editions of these documents.  The benefits of QS 9000 certification
Include improved quality, improved efficiency, improved delivery and company morale, improved internal and external communication.
The QS 9000 applies to all internal or external, potential or existing suppliers’ vendors/subcontractors of production materials, Production or service Parts, heat-treating, painting, plating, finishing services who supply to OEM ( Original Equipment manufacturers ) customers subscribing to the QS 9000 standard.
QS 9000 is a supplement to ISO 9000 with additional requirements for each ISO 9001.  The standard has undergone two revisions since its inception.  The third edition of QS 9000 standard comprises two primary sections.  Section 1 deals with ISO 9000 – based requirements and sector specific requirements while Section II deals with customer-specific requirements.
QS 9000 at Hyundai
Hyundai India was certified to QS 9000 in January 2002, QS 9000 is a customer-driven automotive standard that focuses on defect prevention, continuous improvement and reduction of wastage or variation in the supply chain, development of sub-contractors, product quality, cost, delivery and service.  It is based on a preventive methodology and uses disciplined problem-solving methods.
Benefits of QS 9000 Certification for Hyundai
After QS 9000 certification, activities were streamlined and a focused approach to planning was established.  A team of professionals started concentrating on solving problems and identifying potential areas of improvement.  The main benefits of QS 9000 were.
  • The attitude of workers improved. They felt encouraged to come out with more ideas on mistake-proofing, defect-prevention, statistical  analysis  of a particular activity, etc.
  • The company was able to identify potential failures of the product and take control measures in time by adoption of Failure Mode and Effect Analysis ( FMEA ).
  • Hyundai was able to measure the customer satisfaction/dissatisfaction levels, whereby they were able to improve products through process control.
  • Hyundai has been able to improve the direct pass ratio of vehicles. The field claims on product have also reduced.
  • Customer complaints were analysed by the auditors at length and they also looked at the corrective and preventive action plan.  By adopting QS 9000, the company has eliminated all unrelated/waste processes, non-value added solutions, thereby focusing only on the customer requirements.
  • Employees could relae to QS 9000, as it was close to their work. The employees became more proactive.
The company also realized the importance of the competence of the certification body in implementing a standard.  The full objective of the standard can be achieved only if the certification body is competent.
Questions:
  1. Why did Hyundai decide to implement the QS 9000 system?
  2. What is the difference between ISO 9000 and QS 9000?
  3. Explain the QS 9000 system.
  4. What were the benefits of QS 9000 implementation at Hyundai? 
CASE 05: Supplier Quality Audit at Tata Motors
Tata Motors Private Limited is a leading manufacturer of trucks in India and India’s largest automobile company.  It is the second-largest manufacturer of passenger vehicles in the World.  The company is the world’s fifth-largest medium and heavy commercial vehicles manufacturer and the world’s second-largest medium and heavy bus manufacturer.
Tata Indica
Ratan Tata, the chairman of Tata Motors, had always dreamed of building the country’s first indigenous small car.  In 1995, the company announced that it planned to build the Tata Indica, a car as spacious as the Ambassador, priced close to the Maruti 800 and shaped like the Zen.  Tata Motors had to face many challenges in the process of designing and building the India.
Outsourcing
Tata Motors had to take its primary make or buy decisions for the key inputs such as design, engine and transmission.  Outsourcing was one of the most difficult aspects of producing the Indica.  The company did not have the expertise either to design a car or to build an engine for it.  It had to create a supplier base from scratch.  The company decided to shop globally for the best deals and use its own expertise to make whatever modifications were needed.  Exhibit 18.1 provides a list of components outsourced for developing the Indica.
Exhibit  18.1 Components Outsourced  by Tata Motors
       Sl.No.                                                   Components                                               Supplier
  1. Five door hatch back                                                                   Idea Italy
  2. Engine                                                                                              Institute Francais, France
  3. Assembly line                                                                                Nissan’s Plant Australia
  4. Presses                                                                                            Mercedes Benz
  5. Pistons and piston rings                                                           India Pistons
  6. Electrical components and fuel  injection systems        Lucas — TVS              
  7. Steering systems                                                                           Rane TRW Steering system
  8. Clutch facings and rear drum brake linings                       Sundaram Brake Linings (SBL)
  9. Seating systems                                                                              Tata – Johnson Controls
  10.     Radiators                                                                                       Tata – Toyo
  11. Rear View Mirrors                                                                         Tata – Ficosa
  12. Front and rear bumper, dash board, inside trims            Tata – Auto Plastics
  13. Air – conditioning kits                                                                  Subros Ltd.
  14. Wind screens and windows                                                        Asahi Glass
  15. Fuel lines                                                                                            Imperial Auto
  16. Differential assemblies                                                                 Sona Koyo Steering
  17.     Sheet metal items                                                                         IBM Tools             
Supplier Quality Audit
After making the make or buy decisions, the next step was to identify the suppliers.  Most of the parts and components were sourced locally.  Only about two per cent of the component value was secured from other global players.  Localization of the components was the most important challenge for the company.  The Indica was totally indigenous.
Tata Motors undertook supplier audits to select and monitor suppliers during the development of the Indica.  Supplier audit is an integral part of the decision process for supplier selection.  It enables guarantees regarding design, manufacturing, system, product, raw material and services.  It also enables answering to regulatory requirements which impose these audits.  A supplier quality audit team was formed with a view to ensuring acceptable supplier quality, which became very critical.  The yardstick employed by the company for selecting suppliers was the ability to supply components at the negotiated quality, cost and quantities.

ICMIND ANSWER SHEETS – Bharti Tele-ventures is one of India’s leading private sector telecom operators. Its cellular business, Airtel, is a leading mobile telephony brand

ICMIND ANSWER SHEETS – Bharti Tele-ventures is one of India’s leading private sector telecom operators. Its cellular business, Airtel, is a leading mobile telephony brand

 

Bharti Tele-ventures

 The selection of supplier by the team involved following steps:
  • An initial assessment team from Tata Motors evaluated the supplier.
  • Self-evaluation of the supplier based on the format provided by the company.
  • Quality system survey design validation.
  • Manufacturing validation.
  • Product Part Approval Process (PPAP) for certifying the product quality.
Tata Motors also set up Supplier Quality Improvement Teams to improve the vendors’ system to ensure that they produced defect-free parts.  It applied a thirteen – step quality improvement programme covering supplier self-evaluation, through design-validation and audit of supplier quality. Another key to the company’s successful vendor-base was a modern system of process management.  Tata Motor’s target-costing was broken up into vendor – wise cost targets, and the suppliers had to carry out their own value-engineering exercises to lower cost and improve quality.
Questions:
  1. What were the challenges faced by TATA Motors while selecting its suppliers for India?
  2. What were the reasons for setting up a supplier quality team at TATA motors?
  3. What was the approach followed by the supplier quality audit team?
  4. What is the difference between supplier quality audit and third party quality audit?

 

 

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ICMIND BMS SOLUTIONS – Would you classify Richard Branson as a manager or a Leader What qualities distinguish him as one over the other

ICMIND BMS SOLUTIONS – Would you classify Richard Branson as a manager or a Leader What qualities distinguish him as one over the other

ICMIND BMS SOLUTIONS – Would you classify Richard Branson as a manager or a Leader What qualities distinguish him as one over the other

 

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Leadership

 
NOTE:          Attempt any Four Case Studies with all Questions. All questions carry equal marks.
Case: 01:  Richard Branson Shoots for Moon
Case: 02: “Can Disney Save Disney?”
Case: 03: “Developing Leaders at UPS”
Case: 04: “Paying Attention Pays off Andra Rush”
Case: 05: “Integrating Terms at Hernandez & Associates”
Case: 06: “Keeping up with Bills Gates”
Case: 1:  Richard Branson Shoots for Moon
The virgin Group is the umbrella for a variety of business ventures ranging from air travel to entertainment. With close to 200 companies over 30 countries, it is one of the largest companies in the world. At the head of this huge organization is Richard Branson. Branson founded virgin over 30 years ago and has built organization from a small student magazine multibillion-dollar enterprise it is today.
Branson is not your typical CEO. Branson’s dyslexia (difficulty in recognizing & understanding written language) made school a struggle and sabotaged (deliberate destruction /resistance Damage) his performance on standard IQ tests. His teachers and tests had no way of measuring his greatest strengths-his uncanny (strange-Supernatural) knack (skills-ability) for uncovering lucrative (productive) business ideas and his ability to energize the ambitions of others so that they, like he, could rise to the level of their dreams.
Richard Branson’s true talents began to show themselves in his late teens. While a student at Stowe School in England in 1968, Branson decided to start his own magazine, Student. Branson was inspired by the student activism on his campus in the sixties and decided to try something different. Student differs from most college newspapers & magazines; it focused on the student & there interests. Branson sold advertisings to major corporations to support his magazine. He included articles by ministers of Parliament, rock stars, intellectuals & celebrities. Student grew to become a commercial success.
In 1970 Branson saw an opportunity for student to offer records cheaply by running ads for mail-order delivery. The subscribers to student flooded the magazine with so many orders that his profit spin-off discount music venture proved more lucrative than the magazine subscriptions. Branson required the staff of student for his discount music business. He built a small recording studio and signed his first artist. Mike Oldfield recorded “Tubular Bells” at Virgin in 1973; the album sold 5 million copies. Virgin Records & the Virgin brand name were born. Branson has gone on to start his own airline (Virgin Atlantic Airlines was launched in 1984), build hotels (Virgin Hotels started in 1988), and get into the personal finance business (Virgin Direct Personal finance Services was launched in 1995), and even enter the cola wars (Virgin Cola was launched in 1994). And those are just a few of highlights of the virgin group-all this while Branson has attempted to break world speed records for crossing the Atlantic Ocean by boat hot air balloon.
As you might guess that Branson’s approach is nontraditional–he have no giant corporate office or staff & few of any board meetings. Instead, he keeps each enterprise small and relies on his skills of empowering people’s ideas to fuel success. When a flight attendant form Virgin Airlines approached him with a vision of a wedding business, Richard told her to go do it. He even put on a wedding dress himself to help launch the publicity. Virgin Brides was born. Branson relies heavily on the creativity of his staff; he is more a supporter of new ideas then a creator of them. He encourages searches for new business ideas everywhere he goes and even has a spot on the virgin Website “Got a Big Idea?”
In December 1999, Richard Branson was awarded a knighthood in Queen’s Millennium New Year’s Honours List for “Services to entrepreneurship”. What’s next on Branson’s list? He recently announced that Virgin was investing money in “trying to make sure that, in the not too distance future, people from around the world will be able to go into space.” Not everyone is convinced that space tourism can become fully fledged part of the travel industry, but with Branson behind the idea it just fly.
Questions:
  1. Would you classify Richard Branson as a manager or a Leader? What qualities distinguish him as one over the other?
  2. Followers are part of the leadership process – Describe the relationship between Branson and his followers.
  3. Identify the Myths of leadership development that Richard Branson’s Success helps to disprove.
Case: 2: “Can Disney Save Disney?”
The Disney name identifies an institution whose $22billion in annual sales makes it the world’s largest media company. It was Walt Disney’s creative leadership that established the Disney Company as one of the leader in American business. Walt Disney and his brother Roy started Disney Brothers Studio in Hollywood in 1923. Artistically, in 1930s were Disney’s best years. Walt Disney embraced (Make use of) new advances in color and sound, and put his team of enthusiastic young artists to pursue the most sophisticated techniques of the day. Disney risked everything on his first feature film, snow white and the Seven Dwarfs, released in 1937. Audiences loved it. His focus on the positive and life-affirming themes he introduced into all his work provided much-needed smiles and laughter for audiences during the depths of the great Depression.
Roy Disney became chairman after Walt died of lung cancer in 1966. In 1971 Roy died and his son, Roy E. Disney, became the company’s principle individual share holder.  In 1984 new CEO Michael Eisner and president Frank Wells ushered (introduces strangers at formal events) in an era of innovation and prosperity. They instituted marathon meetings for generating creative ideas, forcing everyone to work grueling (demanding-tough-hard) hours. The approach worked, and for the first 10 years of his tenure, Eisner was considered a genius. He revived Disney’s historic animation unit, invested in the theme parks, led the expansion in to Europe, and breathed new life in to the company by partnering with cutting age companies like Pixar and Miramax. Eisner built Disney into a formidable media power-hose, boosting its profits sixfold and sending its share price soaring almost 60000 percent.
But more recent years have been challenging for Eisner and Disney Company. Eisner’s initial magical effect has lost its shine and his more recent actions and decisions have had less-than-desirable effects on the company. Roy Disney, the last of founding family to work at company. Quit the board in 2003 and began a company to try and oust Eisner. In his letter of resignation Disney asserted that Eisner has become an ineffective leader, claiming that Eisner consistently “micro-manages” everyone, resulting in loss of morale. He saw Eisner’s cost-conscious decisions to shut down an Orlando animation studio and cut cost at theme parks as resulting in “creative brain drain” and creating the perception that the company is looking for “quick buck” solutions rather than long-term value. Disney also cited Eisner’s inability to maintain successful relationship creative partners like Pixar and Miramax (both contracts with these studios were not renewed) and his lack of a succession plan as dangerous to the future of the company.
Eisner ultimately lost his bid to retain his position as CEO and was forced to resign in 2005, one year before his contracts as CEO expired.
Questions:
  1. Consider Walt Disney’s effectiveness in terms of the three domains of leadership- the leader, the followers, and situation. For each domain name factors that contributed to Disney’s success.
  2. Now think about Michael Eisner’s Leadership effectiveness. Name factors within the three domains of leadership that might be responsible for controversy surrounding Eisner’s success and then ultimate failure and removal as Disney’s CEO.
Case: 3: “Developing Leaders at UPS”
UPS is the nation’s fourth largest company with 357,000 employees worldwide and operations in more than 200 countries. UPS is constantly recognized as one of the “top companies to work for” and was recognized by Fortune as one of the 50 best companies for minorities. A major reason for UPS’s success is the commitment to its employees. UPS understand the importance to of providing both education and experience for its next generation of leaders-spending $300 million dollars annually on education programs for employees and encouraging promotion within. All employees are offered equal opportunities to build the skills and knowledge they need to succeed. A perfect example of this is Jovita Carranza.
Jovita Carranza joined UPS in 1976 as a part-time clerk in Los Angeles. Carranza demonstrated a strong work ethic and a commitment to UPS, and UPS rewarded her with opportunities-opportunities Carranza was not shy about taking advantage of By 1985 Carranza was the workforce planning manager in metro LA By 1987 she was district human resource manager based in Central Texas. By 1990 she had accepted a move to district human resource manager in Illinois. She received her first operations assignment, as division manager of hub, package, and feeder operations; in Illinois in 1996 she accepted the same role in Wisconsin. By 1999 Carranza’s progressive success led UPS to promote her to president of Americas Region. From there she moved into her current position as vice-president of UPS Air Operations, based in Louisville, Kentucky.
The $1.1 billion air hub she currently oversees sprawls across the equivalent of more than 80 football fields. It can handle 304,000 packages an hour, its computers process nearly 1 million transactions a minute, and it serves as the lynchpin for the $33 billion business that has become the world’s largest package-delivery company.
Carranza attributes much of her success to her eagerness to take on new challenges: “The one error that people make early on in their careers is that they’re very selective about opportunities so they avoid some prefer others.” She says. “I always accept all opportunities that presented themselves because from each one you can learn something, and they serve as a platform for future endeavors.”
It has also been important, she says, to surround herself with capable, skilled employees who are loyal to the company and committed to results. After nearly 30 years with UPS, it is teamwork, interaction, and staff development that Carranza says is one of the achievements of which she is proudest: “Because that takes focus, determination, sincerity to perpetuate the UPS culture and enhance it through people.”
Carranza’s corporate achievements, determination, drive, innovation, and leadership in business have earned her the distinction of being named Hispanic Business Magazine’s Woman of the year. She credits her parents, both of Mexican descent, with teaching her “the importance of being committed, of working hard, and doing so with a positive outlook,” principles she continue to guide her personal and professional life. The principles mirror those of the company whose corporate leader she has climbed nonstop, an organization she says that values diversity, encourages quality, integrity, commitment, fairness, loyalty, and social responsibility, among other values.
Among Carranza’s worlds of wisdom: “…sit back and listen and observe,” she says. “You learn more by not speaking. Intelligent people learn from their own experiences; with wisdom, you learn from other people’s mistake. I’m very methodical about that.”
Questions:
  1. What are the major skills Jovita Carranza has demonstrated in her career at UPS that have made her a successful leader?
  2. Consider the spiral of experience that Jovita Carranza has travelled. How has her experience affected her ability as a leader?
  3. List out the characteristics of successful leaders. How many of this is demonstrated by Jovita Carranza?
Case: 04: “Paying Attention Pays off Andra Rush”
Paying attention has been the key for Andra Rush. As a nursing school graduate she was paying attention when other nurses complained about unfair treatment and decided she wanted to do something about it—so she enrolled in the University of Michigan’s MBA program so she could do something about how employees were treated. As she completed her business courses and continued to work as a nurse, she was paying attention when a patient described his experience in the transport business. The Business sounded Intriguing, and so, with minimal experience and minimal resources. Rush took a risk and started her own trucking business. She scraped together the funds to buy three trucks by borrowing money from family and maxxing out her credit cards. She specialized in emergency shipping and accepts every job that came her way, even if it meant driving the truck. She paid attention to her customers and made a point of exceeding their expectations regardless of the circumstance. When the terrorist attacks of September 11 shut down local bridges, Rush rented a barge to make sure a crucial shipment for Diamler Chryusler made it to its destination on time.
Rush continues to pay attention and credits her listening skills as a major reason for her success. Rush is distinct in the traditionally white male –dominated trucking industry –a woman and minority (Rush is Native American) who credits her heritage and the “enormous strength” of her Mohawk grandmother for helping her prevail.
“It is entirely possible that my native sprit, communicated to me by my grandmother and my immediate family, have enabled me to overcome the isolation, historical prejudice, and business environment viewed as a barrier to native and woman owned businesses. The willingness to listen, to understand first, and act directly and honestly with integrity is a lesson and code of conduct my elders have bequeathed to me. Being an entrepreneur has reinforced those lessons again and again.’’
Her Mohawk heritage is pervasive. Rush’s company logo is a war staff with six feathers representing the six nations of the Iroquois: Mohawk, Onondaga, Oneida, Cayuga, Tuscarora and Seneca. She believes in the power of a diverse work force and as a result more than half of the 390 employees at Rush Trucking are women and half are Minorities.
Rush Keeps close tabs on her company and its Employees. Thought the company has grown from its humble three-truck beginning to a fleet of 1,7000 trucks, Rush still takes time to ride along with driver. She has provided educational Programs like “The Readers’Edge,” a literacy program, to improve the skills and lives of her employees. Rush is actively involved in several organizations that work to improve the positions of minorities—she’s on the boards of directors  of the Michigan Minority Business Development Council, Minority Enterprise Development/Minority Business Development Agency, Minority Business Roundtable, and has served as president of the Native American Business Alliance.

ICMIND BMS SOLUTIONS – Would you classify Richard Branson as a manager or a Leader What qualities distinguish him as one over the other

Arden University - Contemporary Developmental Psychology Assignment,
ICMIND BMS SOLUTIONS – Would you classify Richard Branson as a manager or a Leader What qualities distinguish him as one over the other

Would you classify Richard Branson

Question:
  1. As we have discussed, competency models describe the behaviors and skills manager need to exhibit if any organization is to be successful. Consider the general competencies found in figure 8.3 and apply these to Andra Rush, providing example of why these competencies apply.
  2. Mentoring has played a role in the careers of many successful minorities in leadership positions. Who could be identified as a coach or mentor for Andra Rush?
  3. Consider some of the self-defeating behaviors outlines in this chapter that contribute to management derailment. What lessons has Andra Rush obviously learned from the failure of others?
Case: 05: “Integrating Terms at Hernandez & Associates”
Marco Hernandez is president of Hernandez & Associate Inc., a full- service advertising agency with clients across North America. The company provides a variety of marketing services to support its diverse group of clients. Whether called on to generate a strategic plan, create interactive Web sites, or put together a full- blown media campaign, the team at Hernandez & associates prides itself on creative solutions to its clients’ marketing challenges.
The firm was founded in 1990 with an emphasis in the real estate industry. It quickly expanded its client base to include health care, as well as food and consumer products. Like many small firms the company grew quickly in the “high-flyinf”1990s, but its administrative costs to obtain and service businesses also skyrocketed. And, as with many businesses, the agency’s business was greatly affected by the terrorist attacks of September 11 and the economic downturn that followed. Clients’ shrinking budgets forced them to scale back their business with Hernandez & Associates and cut backs in staffing meant clients needs more marketing support services as opposed to full scale campaigns.
Hernandez& Associates now faced a challenge—to adapt its business to focus on what the clients were asking for. Specifically, clients, with their reduces staffs, were looking for help responding to their customers’ request and looking for ways to make the most of their more limited marketing budgets. Its small, cohesive staff of 20 employees needed to make some changes and quickly.
As president of Hernandez & Associates, Marco Hernandez Knew his tram was up for the challenge. He had worked hard to create environments to support a successful team—he recruited people who has solid agency experience and he consistently communicated the firm’s mission to his team, he made sure the team has all the resources it needed to success and constantly took stock of the resources. He has built his team as he built his business and knew the group would respond to his leadership. But where to start? Getting the team to understand that growth depended on a shift in how it serviced its clients was not difficult—each of the employees of the small firm had enough contact with the clients that they knew client needs were changing. But making significant changes to the status quo at Hernandez & associates would be difficult. Group roles  has to change—creative folks has to think about how to increase a client’s phone inquiries and Web site visits; account people needed a better understanding of the client’s desire for more agency leadership. And everyone has to have better sense of the costs involved. The company as a whole needed a more integrated approach to servicing their clients if they hoped to survive. Marco needed a plan.
Question:-
  1. Like many leader, Marco has team in place and does not have the luxury of building a new team from the ground up to adapt to the changing business environment his firm is face with, Use the TLM to help Marco diagnose the problems faced by the firm and identify leverage points for change.
  2. Consider the major functions of the TLM—input process and output where do most of the firm’s challenges fall?
  3. What are the team’s goals for outputs
  4. Identify potential resources for Marco and his team in implementing a strategy to change the way they do business at Hernandez & Associates.
Case: 06: “Keeping up with Bills Gates”
Bills Gates inherited intelligence, ambition, and a competitive spirit form his father, a successful seattle attorney. After graduating from a private prep school in seattle, he enrolled in Harvard but dropped out to pursue his passion – computer programming. Paul Allen, a friend from prep school, presented gates with the idea of writing a version of the BASIC computer language for the Altair8800, one of the first personal computers on the market. Driven by his competitive nature, Gates decided he wanted to be the first personal computer on the market. Driven by his competitive nature, Gates decided he wanted to be the first to develop a language to make the personal computer accessible for the general public. He and Allen established the Microsoft Corporation in 1975. Gate’s passion and skill were programming- he would work night and day to meet the extremely aggressive deadlines he set for himself and his company. Eventually Gates has to bring in other programmers – he focused on recent college graduates. “we decided that we want them to come with clear minds, not polluted by some other approach, to learn the ways that we liked to develop software, and to put the kind of energy into it that we thought was key.”
In the early days of Microsoft, Gates was in charge of product planning and programming while Allen was in charge of the business side. He motivated his programmers with the claim that whatever deadline was looming, no matter how tight, he could beat it personally if he had to. What eventually developed at Microsoft was a culture in which Gates was king. Everyone working under Gates was made to feel they were lesser programmers who couldn’t
Compete with his skill or drive, so they competed with each other. They worked long hours and tried their best to mirror Gates—his drive, his ambition, his skill. This internal competition motivated the programmers and made Microsoft one of the most successful companies in the computer industry, and one of the most profitable. The corporation has creates a tremendous amount of wealth—many of its employees have become millionaires while working at Microsoft, including, of course, Bill Gates, currently one of the richest men in the world. During the 1990s, Bill Gate’s net worth grew at an average rate of $34 million per day; that’s $200 million per week.
Gates need a castle for his kingdom and so he built a much talked-about his house on Lake Washington. The house lies mainly underground and looks like a set of separate buildings when viewed from above. The house was conceived as a showcase for Microsoft technology—it took $60 million, seven years of planning and construction, and three  generations of computer hardware before is was finally finished. A feature of the house that reveals a lot about it owner is the house’s system of electronic badges. These badges let the house computer know where each resident and visitor is in the house. The purpose of the badges is to allow the computer to adjust the climate and music and to match the preferences of the people in the house as they move from room to room. What happen when more than one person is in a room? The computer defaults to Gate’s personal preferences.
Questions:-
  1. Would you classify Bill Gates as a charismatic or transformational leader? Why?
  2. Consider followers/employees of gates. What are some of the unique characteristics of Gate’s followers that might identify him as a charismatic or transformational?

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ICMIND DMS ANSWER SHEETS – Would you classify Bill Gates as a charismatic or transformational leader Why

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Leadership

 
NOTE:          Attempt any Four Case Studies with all Questions. All questions carry equal marks.
Case: 01:  Richard Branson Shoots for Moon
Case: 02: “Can Disney Save Disney?”
Case: 03: “Developing Leaders at UPS”
Case: 04: “Paying Attention Pays off Andra Rush”
Case: 05: “Integrating Terms at Hernandez & Associates”
Case: 06: “Keeping up with Bills Gates”
Case: 1:  Richard Branson Shoots for Moon
The virgin Group is the umbrella for a variety of business ventures ranging from air travel to entertainment. With close to 200 companies over 30 countries, it is one of the largest companies in the world. At the head of this huge organization is Richard Branson. Branson founded virgin over 30 years ago and has built organization from a small student magazine multibillion-dollar enterprise it is today.
Branson is not your typical CEO. Branson’s dyslexia (difficulty in recognizing & understanding written language) made school a struggle and sabotaged (deliberate destruction /resistance Damage) his performance on standard IQ tests. His teachers and tests had no way of measuring his greatest strengths-his uncanny (strange-Supernatural) knack (skills-ability) for uncovering lucrative (productive) business ideas and his ability to energize the ambitions of others so that they, like he, could rise to the level of their dreams.
Richard Branson’s true talents began to show themselves in his late teens. While a student at Stowe School in England in 1968, Branson decided to start his own magazine, Student. Branson was inspired by the student activism on his campus in the sixties and decided to try something different. Student differs from most college newspapers & magazines; it focused on the student & there interests. Branson sold advertisings to major corporations to support his magazine. He included articles by ministers of Parliament, rock stars, intellectuals & celebrities. Student grew to become a commercial success.
In 1970 Branson saw an opportunity for student to offer records cheaply by running ads for mail-order delivery. The subscribers to student flooded the magazine with so many orders that his profit spin-off discount music venture proved more lucrative than the magazine subscriptions. Branson required the staff of student for his discount music business. He built a small recording studio and signed his first artist. Mike Oldfield recorded “Tubular Bells” at Virgin in 1973; the album sold 5 million copies. Virgin Records & the Virgin brand name were born. Branson has gone on to start his own airline (Virgin Atlantic Airlines was launched in 1984), build hotels (Virgin Hotels started in 1988), and get into the personal finance business (Virgin Direct Personal finance Services was launched in 1995), and even enter the cola wars (Virgin Cola was launched in 1994). And those are just a few of highlights of the virgin group-all this while Branson has attempted to break world speed records for crossing the Atlantic Ocean by boat hot air balloon.
As you might guess that Branson’s approach is nontraditional–he have no giant corporate office or staff & few of any board meetings. Instead, he keeps each enterprise small and relies on his skills of empowering people’s ideas to fuel success. When a flight attendant form Virgin Airlines approached him with a vision of a wedding business, Richard told her to go do it. He even put on a wedding dress himself to help launch the publicity. Virgin Brides was born. Branson relies heavily on the creativity of his staff; he is more a supporter of new ideas then a creator of them. He encourages searches for new business ideas everywhere he goes and even has a spot on the virgin Website “Got a Big Idea?”
In December 1999, Richard Branson was awarded a knighthood in Queen’s Millennium New Year’s Honours List for “Services to entrepreneurship”. What’s next on Branson’s list? He recently announced that Virgin was investing money in “trying to make sure that, in the not too distance future, people from around the world will be able to go into space.” Not everyone is convinced that space tourism can become fully fledged part of the travel industry, but with Branson behind the idea it just fly.
Questions:
  1. Would you classify Richard Branson as a manager or a Leader? What qualities distinguish him as one over the other?
  2. Followers are part of the leadership process – Describe the relationship between Branson and his followers.
  3. Identify the Myths of leadership development that Richard Branson’s Success helps to disprove.
Case: 2: “Can Disney Save Disney?”
The Disney name identifies an institution whose $22billion in annual sales makes it the world’s largest media company. It was Walt Disney’s creative leadership that established the Disney Company as one of the leader in American business. Walt Disney and his brother Roy started Disney Brothers Studio in Hollywood in 1923. Artistically, in 1930s were Disney’s best years. Walt Disney embraced (Make use of) new advances in color and sound, and put his team of enthusiastic young artists to pursue the most sophisticated techniques of the day. Disney risked everything on his first feature film, snow white and the Seven Dwarfs, released in 1937. Audiences loved it. His focus on the positive and life-affirming themes he introduced into all his work provided much-needed smiles and laughter for audiences during the depths of the great Depression.
Roy Disney became chairman after Walt died of lung cancer in 1966. In 1971 Roy died and his son, Roy E. Disney, became the company’s principle individual share holder.  In 1984 new CEO Michael Eisner and president Frank Wells ushered (introduces strangers at formal events) in an era of innovation and prosperity. They instituted marathon meetings for generating creative ideas, forcing everyone to work grueling (demanding-tough-hard) hours. The approach worked, and for the first 10 years of his tenure, Eisner was considered a genius. He revived Disney’s historic animation unit, invested in the theme parks, led the expansion in to Europe, and breathed new life in to the company by partnering with cutting age companies like Pixar and Miramax. Eisner built Disney into a formidable media power-hose, boosting its profits sixfold and sending its share price soaring almost 60000 percent.
But more recent years have been challenging for Eisner and Disney Company. Eisner’s initial magical effect has lost its shine and his more recent actions and decisions have had less-than-desirable effects on the company. Roy Disney, the last of founding family to work at company. Quit the board in 2003 and began a company to try and oust Eisner. In his letter of resignation Disney asserted that Eisner has become an ineffective leader, claiming that Eisner consistently “micro-manages” everyone, resulting in loss of morale. He saw Eisner’s cost-conscious decisions to shut down an Orlando animation studio and cut cost at theme parks as resulting in “creative brain drain” and creating the perception that the company is looking for “quick buck” solutions rather than long-term value. Disney also cited Eisner’s inability to maintain successful relationship creative partners like Pixar and Miramax (both contracts with these studios were not renewed) and his lack of a succession plan as dangerous to the future of the company.
Eisner ultimately lost his bid to retain his position as CEO and was forced to resign in 2005, one year before his contracts as CEO expired.
Questions:
  1. Consider Walt Disney’s effectiveness in terms of the three domains of leadership- the leader, the followers, and situation. For each domain name factors that contributed to Disney’s success.
  2. Now think about Michael Eisner’s Leadership effectiveness. Name factors within the three domains of leadership that might be responsible for controversy surrounding Eisner’s success and then ultimate failure and removal as Disney’s CEO.
Case: 3: “Developing Leaders at UPS”
UPS is the nation’s fourth largest company with 357,000 employees worldwide and operations in more than 200 countries. UPS is constantly recognized as one of the “top companies to work for” and was recognized by Fortune as one of the 50 best companies for minorities. A major reason for UPS’s success is the commitment to its employees. UPS understand the importance to of providing both education and experience for its next generation of leaders-spending $300 million dollars annually on education programs for employees and encouraging promotion within. All employees are offered equal opportunities to build the skills and knowledge they need to succeed. A perfect example of this is Jovita Carranza.
Jovita Carranza joined UPS in 1976 as a part-time clerk in Los Angeles. Carranza demonstrated a strong work ethic and a commitment to UPS, and UPS rewarded her with opportunities-opportunities Carranza was not shy about taking advantage of By 1985 Carranza was the workforce planning manager in metro LA By 1987 she was district human resource manager based in Central Texas. By 1990 she had accepted a move to district human resource manager in Illinois. She received her first operations assignment, as division manager of hub, package, and feeder operations; in Illinois in 1996 she accepted the same role in Wisconsin. By 1999 Carranza’s progressive success led UPS to promote her to president of Americas Region. From there she moved into her current position as vice-president of UPS Air Operations, based in Louisville, Kentucky.
The $1.1 billion air hub she currently oversees sprawls across the equivalent of more than 80 football fields. It can handle 304,000 packages an hour, its computers process nearly 1 million transactions a minute, and it serves as the lynchpin for the $33 billion business that has become the world’s largest package-delivery company.
Carranza attributes much of her success to her eagerness to take on new challenges: “The one error that people make early on in their careers is that they’re very selective about opportunities so they avoid some prefer others.” She says. “I always accept all opportunities that presented themselves because from each one you can learn something, and they serve as a platform for future endeavors.”
It has also been important, she says, to surround herself with capable, skilled employees who are loyal to the company and committed to results. After nearly 30 years with UPS, it is teamwork, interaction, and staff development that Carranza says is one of the achievements of which she is proudest: “Because that takes focus, determination, sincerity to perpetuate the UPS culture and enhance it through people.”
Carranza’s corporate achievements, determination, drive, innovation, and leadership in business have earned her the distinction of being named Hispanic Business Magazine’s Woman of the year. She credits her parents, both of Mexican descent, with teaching her “the importance of being committed, of working hard, and doing so with a positive outlook,” principles she continue to guide her personal and professional life. The principles mirror those of the company whose corporate leader she has climbed nonstop, an organization she says that values diversity, encourages quality, integrity, commitment, fairness, loyalty, and social responsibility, among other values.
Among Carranza’s worlds of wisdom: “…sit back and listen and observe,” she says. “You learn more by not speaking. Intelligent people learn from their own experiences; with wisdom, you learn from other people’s mistake. I’m very methodical about that.”
Questions:
  1. What are the major skills Jovita Carranza has demonstrated in her career at UPS that have made her a successful leader?
  2. Consider the spiral of experience that Jovita Carranza has travelled. How has her experience affected her ability as a leader?
  3. List out the characteristics of successful leaders. How many of this is demonstrated by Jovita Carranza?
Case: 04: “Paying Attention Pays off Andra Rush”
Paying attention has been the key for Andra Rush. As a nursing school graduate she was paying attention when other nurses complained about unfair treatment and decided she wanted to do something about it—so she enrolled in the University of Michigan’s MBA program so she could do something about how employees were treated. As she completed her business courses and continued to work as a nurse, she was paying attention when a patient described his experience in the transport business. The Business sounded Intriguing, and so, with minimal experience and minimal resources. Rush took a risk and started her own trucking business. She scraped together the funds to buy three trucks by borrowing money from family and maxxing out her credit cards. She specialized in emergency shipping and accepts every job that came her way, even if it meant driving the truck. She paid attention to her customers and made a point of exceeding their expectations regardless of the circumstance. When the terrorist attacks of September 11 shut down local bridges, Rush rented a barge to make sure a crucial shipment for Diamler Chryusler made it to its destination on time.
Rush continues to pay attention and credits her listening skills as a major reason for her success. Rush is distinct in the traditionally white male –dominated trucking industry –a woman and minority (Rush is Native American) who credits her heritage and the “enormous strength” of her Mohawk grandmother for helping her prevail.
“It is entirely possible that my native sprit, communicated to me by my grandmother and my immediate family, have enabled me to overcome the isolation, historical prejudice, and business environment viewed as a barrier to native and woman owned businesses. The willingness to listen, to understand first, and act directly and honestly with integrity is a lesson and code of conduct my elders have bequeathed to me. Being an entrepreneur has reinforced those lessons again and again.’’
Her Mohawk heritage is pervasive. Rush’s company logo is a war staff with six feathers representing the six nations of the Iroquois: Mohawk, Onondaga, Oneida, Cayuga, Tuscarora and Seneca. She believes in the power of a diverse work force and as a result more than half of the 390 employees at Rush Trucking are women and half are Minorities.
Rush Keeps close tabs on her company and its Employees. Thought the company has grown from its humble three-truck beginning to a fleet of 1,7000 trucks, Rush still takes time to ride along with driver. She has provided educational Programs like “The Readers’Edge,” a literacy program, to improve the skills and lives of her employees. Rush is actively involved in several organizations that work to improve the positions of minorities—she’s on the boards of directors  of the Michigan Minority Business Development Council, Minority Enterprise Development/Minority Business Development Agency, Minority Business Roundtable, and has served as president of the Native American Business Alliance.

ICMIND DMS ANSWER SHEETS – Would you classify Bill Gates as a charismatic or transformational leader Why

ICMIND DMS ANSWER SHEETS – Would you classify Bill Gates as a charismatic or transformational leader Why

transformational leader

 

Question:
  1. As we have discussed, competency models describe the behaviors and skills manager need to exhibit if any organization is to be successful. Consider the general competencies found in figure 8.3 and apply these to Andra Rush, providing example of why these competencies apply.
  2. Mentoring has played a role in the careers of many successful minorities in leadership positions. Who could be identified as a coach or mentor for Andra Rush?
  3. Consider some of the self-defeating behaviors outlines in this chapter that contribute to management derailment. What lessons has Andra Rush obviously learned from the failure of others?
Case: 05: “Integrating Terms at Hernandez & Associates”
Marco Hernandez is president of Hernandez & Associate Inc., a full- service advertising agency with clients across North America. The company provides a variety of marketing services to support its diverse group of clients. Whether called on to generate a strategic plan, create interactive Web sites, or put together a full- blown media campaign, the team at Hernandez & associates prides itself on creative solutions to its clients’ marketing challenges.
The firm was founded in 1990 with an emphasis in the real estate industry. It quickly expanded its client base to include health care, as well as food and consumer products. Like many small firms the company grew quickly in the “high-flyinf”1990s, but its administrative costs to obtain and service businesses also skyrocketed. And, as with many businesses, the agency’s business was greatly affected by the terrorist attacks of September 11 and the economic downturn that followed. Clients’ shrinking budgets forced them to scale back their business with Hernandez & Associates and cut backs in staffing meant clients needs more marketing support services as opposed to full scale campaigns.
Hernandez& Associates now faced a challenge—to adapt its business to focus on what the clients were asking for. Specifically, clients, with their reduces staffs, were looking for help responding to their customers’ request and looking for ways to make the most of their more limited marketing budgets. Its small, cohesive staff of 20 employees needed to make some changes and quickly.
As president of Hernandez & Associates, Marco Hernandez Knew his tram was up for the challenge. He had worked hard to create environments to support a successful team—he recruited people who has solid agency experience and he consistently communicated the firm’s mission to his team, he made sure the team has all the resources it needed to success and constantly took stock of the resources. He has built his team as he built his business and knew the group would respond to his leadership. But where to start? Getting the team to understand that growth depended on a shift in how it serviced its clients was not difficult—each of the employees of the small firm had enough contact with the clients that they knew client needs were changing. But making significant changes to the status quo at Hernandez & associates would be difficult. Group roles  has to change—creative folks has to think about how to increase a client’s phone inquiries and Web site visits; account people needed a better understanding of the client’s desire for more agency leadership. And everyone has to have better sense of the costs involved. The company as a whole needed a more integrated approach to servicing their clients if they hoped to survive. Marco needed a plan.
Question:-
  1. Like many leader, Marco has team in place and does not have the luxury of building a new team from the ground up to adapt to the changing business environment his firm is face with, Use the TLM to help Marco diagnose the problems faced by the firm and identify leverage points for change.
  2. Consider the major functions of the TLM—input process and output where do most of the firm’s challenges fall?
  3. What are the team’s goals for outputs
  4. Identify potential resources for Marco and his team in implementing a strategy to change the way they do business at Hernandez & Associates.
Case: 06: “Keeping up with Bills Gates”
Bills Gates inherited intelligence, ambition, and a competitive spirit form his father, a successful seattle attorney. After graduating from a private prep school in seattle, he enrolled in Harvard but dropped out to pursue his passion – computer programming. Paul Allen, a friend from prep school, presented gates with the idea of writing a version of the BASIC computer language for the Altair8800, one of the first personal computers on the market. Driven by his competitive nature, Gates decided he wanted to be the first personal computer on the market. Driven by his competitive nature, Gates decided he wanted to be the first to develop a language to make the personal computer accessible for the general public. He and Allen established the Microsoft Corporation in 1975. Gate’s passion and skill were programming- he would work night and day to meet the extremely aggressive deadlines he set for himself and his company. Eventually Gates has to bring in other programmers – he focused on recent college graduates. “we decided that we want them to come with clear minds, not polluted by some other approach, to learn the ways that we liked to develop software, and to put the kind of energy into it that we thought was key.”
In the early days of Microsoft, Gates was in charge of product planning and programming while Allen was in charge of the business side. He motivated his programmers with the claim that whatever deadline was looming, no matter how tight, he could beat it personally if he had to. What eventually developed at Microsoft was a culture in which Gates was king. Everyone working under Gates was made to feel they were lesser programmers who couldn’t
Compete with his skill or drive, so they competed with each other. They worked long hours and tried their best to mirror Gates—his drive, his ambition, his skill. This internal competition motivated the programmers and made Microsoft one of the most successful companies in the computer industry, and one of the most profitable. The corporation has creates a tremendous amount of wealth—many of its employees have become millionaires while working at Microsoft, including, of course, Bill Gates, currently one of the richest men in the world. During the 1990s, Bill Gate’s net worth grew at an average rate of $34 million per day; that’s $200 million per week.
Gates need a castle for his kingdom and so he built a much talked-about his house on Lake Washington. The house lies mainly underground and looks like a set of separate buildings when viewed from above. The house was conceived as a showcase for Microsoft technology—it took $60 million, seven years of planning and construction, and three  generations of computer hardware before is was finally finished. A feature of the house that reveals a lot about it owner is the house’s system of electronic badges. These badges let the house computer know where each resident and visitor is in the house. The purpose of the badges is to allow the computer to adjust the climate and music and to match the preferences of the people in the house as they move from room to room. What happen when more than one person is in a room? The computer defaults to Gate’s personal preferences.
Questions:-
  1. Would you classify Bill Gates as a charismatic or transformational leader? Why?
  2. Consider followers/employees of gates. What are some of the unique characteristics of Gate’s followers that might identify him as a charismatic or transformational?

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ICMIND EMBA SOLUTION PAPERS – What are the team’s goals for outputs

ICMIND EMBA SOLUTION PAPERS – What are the team’s goals for outputs

ICMIND EMBA SOLUTION PAPERS – What are the team’s goals for outputs

 

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Leadership

 
NOTE:          Attempt any Four Case Studies with all Questions. All questions carry equal marks.
Case: 01:  Richard Branson Shoots for Moon
Case: 02: “Can Disney Save Disney?”
Case: 03: “Developing Leaders at UPS”
Case: 04: “Paying Attention Pays off Andra Rush”
Case: 05: “Integrating Terms at Hernandez & Associates”
Case: 06: “Keeping up with Bills Gates”
Case: 1:  Richard Branson Shoots for Moon
The virgin Group is the umbrella for a variety of business ventures ranging from air travel to entertainment. With close to 200 companies over 30 countries, it is one of the largest companies in the world. At the head of this huge organization is Richard Branson. Branson founded virgin over 30 years ago and has built organization from a small student magazine multibillion-dollar enterprise it is today.
Branson is not your typical CEO. Branson’s dyslexia (difficulty in recognizing & understanding written language) made school a struggle and sabotaged (deliberate destruction /resistance Damage) his performance on standard IQ tests. His teachers and tests had no way of measuring his greatest strengths-his uncanny (strange-Supernatural) knack (skills-ability) for uncovering lucrative (productive) business ideas and his ability to energize the ambitions of others so that they, like he, could rise to the level of their dreams.
Richard Branson’s true talents began to show themselves in his late teens. While a student at Stowe School in England in 1968, Branson decided to start his own magazine, Student. Branson was inspired by the student activism on his campus in the sixties and decided to try something different. Student differs from most college newspapers & magazines; it focused on the student & there interests. Branson sold advertisings to major corporations to support his magazine. He included articles by ministers of Parliament, rock stars, intellectuals & celebrities. Student grew to become a commercial success.
In 1970 Branson saw an opportunity for student to offer records cheaply by running ads for mail-order delivery. The subscribers to student flooded the magazine with so many orders that his profit spin-off discount music venture proved more lucrative than the magazine subscriptions. Branson required the staff of student for his discount music business. He built a small recording studio and signed his first artist. Mike Oldfield recorded “Tubular Bells” at Virgin in 1973; the album sold 5 million copies. Virgin Records & the Virgin brand name were born. Branson has gone on to start his own airline (Virgin Atlantic Airlines was launched in 1984), build hotels (Virgin Hotels started in 1988), and get into the personal finance business (Virgin Direct Personal finance Services was launched in 1995), and even enter the cola wars (Virgin Cola was launched in 1994). And those are just a few of highlights of the virgin group-all this while Branson has attempted to break world speed records for crossing the Atlantic Ocean by boat hot air balloon.
As you might guess that Branson’s approach is nontraditional–he have no giant corporate office or staff & few of any board meetings. Instead, he keeps each enterprise small and relies on his skills of empowering people’s ideas to fuel success. When a flight attendant form Virgin Airlines approached him with a vision of a wedding business, Richard told her to go do it. He even put on a wedding dress himself to help launch the publicity. Virgin Brides was born. Branson relies heavily on the creativity of his staff; he is more a supporter of new ideas then a creator of them. He encourages searches for new business ideas everywhere he goes and even has a spot on the virgin Website “Got a Big Idea?”
In December 1999, Richard Branson was awarded a knighthood in Queen’s Millennium New Year’s Honours List for “Services to entrepreneurship”. What’s next on Branson’s list? He recently announced that Virgin was investing money in “trying to make sure that, in the not too distance future, people from around the world will be able to go into space.” Not everyone is convinced that space tourism can become fully fledged part of the travel industry, but with Branson behind the idea it just fly.
Questions:
  1. Would you classify Richard Branson as a manager or a Leader? What qualities distinguish him as one over the other?
  2. Followers are part of the leadership process – Describe the relationship between Branson and his followers.
  3. Identify the Myths of leadership development that Richard Branson’s Success helps to disprove.
Case: 2: “Can Disney Save Disney?”
The Disney name identifies an institution whose $22billion in annual sales makes it the world’s largest media company. It was Walt Disney’s creative leadership that established the Disney Company as one of the leader in American business. Walt Disney and his brother Roy started Disney Brothers Studio in Hollywood in 1923. Artistically, in 1930s were Disney’s best years. Walt Disney embraced (Make use of) new advances in color and sound, and put his team of enthusiastic young artists to pursue the most sophisticated techniques of the day. Disney risked everything on his first feature film, snow white and the Seven Dwarfs, released in 1937. Audiences loved it. His focus on the positive and life-affirming themes he introduced into all his work provided much-needed smiles and laughter for audiences during the depths of the great Depression.
Roy Disney became chairman after Walt died of lung cancer in 1966. In 1971 Roy died and his son, Roy E. Disney, became the company’s principle individual share holder.  In 1984 new CEO Michael Eisner and president Frank Wells ushered (introduces strangers at formal events) in an era of innovation and prosperity. They instituted marathon meetings for generating creative ideas, forcing everyone to work grueling (demanding-tough-hard) hours. The approach worked, and for the first 10 years of his tenure, Eisner was considered a genius. He revived Disney’s historic animation unit, invested in the theme parks, led the expansion in to Europe, and breathed new life in to the company by partnering with cutting age companies like Pixar and Miramax. Eisner built Disney into a formidable media power-hose, boosting its profits sixfold and sending its share price soaring almost 60000 percent.
But more recent years have been challenging for Eisner and Disney Company. Eisner’s initial magical effect has lost its shine and his more recent actions and decisions have had less-than-desirable effects on the company. Roy Disney, the last of founding family to work at company. Quit the board in 2003 and began a company to try and oust Eisner. In his letter of resignation Disney asserted that Eisner has become an ineffective leader, claiming that Eisner consistently “micro-manages” everyone, resulting in loss of morale. He saw Eisner’s cost-conscious decisions to shut down an Orlando animation studio and cut cost at theme parks as resulting in “creative brain drain” and creating the perception that the company is looking for “quick buck” solutions rather than long-term value. Disney also cited Eisner’s inability to maintain successful relationship creative partners like Pixar and Miramax (both contracts with these studios were not renewed) and his lack of a succession plan as dangerous to the future of the company.
Eisner ultimately lost his bid to retain his position as CEO and was forced to resign in 2005, one year before his contracts as CEO expired.
Questions:
  1. Consider Walt Disney’s effectiveness in terms of the three domains of leadership- the leader, the followers, and situation. For each domain name factors that contributed to Disney’s success.
  2. Now think about Michael Eisner’s Leadership effectiveness. Name factors within the three domains of leadership that might be responsible for controversy surrounding Eisner’s success and then ultimate failure and removal as Disney’s CEO.
Case: 3: “Developing Leaders at UPS”
UPS is the nation’s fourth largest company with 357,000 employees worldwide and operations in more than 200 countries. UPS is constantly recognized as one of the “top companies to work for” and was recognized by Fortune as one of the 50 best companies for minorities. A major reason for UPS’s success is the commitment to its employees. UPS understand the importance to of providing both education and experience for its next generation of leaders-spending $300 million dollars annually on education programs for employees and encouraging promotion within. All employees are offered equal opportunities to build the skills and knowledge they need to succeed. A perfect example of this is Jovita Carranza.
Jovita Carranza joined UPS in 1976 as a part-time clerk in Los Angeles. Carranza demonstrated a strong work ethic and a commitment to UPS, and UPS rewarded her with opportunities-opportunities Carranza was not shy about taking advantage of By 1985 Carranza was the workforce planning manager in metro LA By 1987 she was district human resource manager based in Central Texas. By 1990 she had accepted a move to district human resource manager in Illinois. She received her first operations assignment, as division manager of hub, package, and feeder operations; in Illinois in 1996 she accepted the same role in Wisconsin. By 1999 Carranza’s progressive success led UPS to promote her to president of Americas Region. From there she moved into her current position as vice-president of UPS Air Operations, based in Louisville, Kentucky.
The $1.1 billion air hub she currently oversees sprawls across the equivalent of more than 80 football fields. It can handle 304,000 packages an hour, its computers process nearly 1 million transactions a minute, and it serves as the lynchpin for the $33 billion business that has become the world’s largest package-delivery company.
Carranza attributes much of her success to her eagerness to take on new challenges: “The one error that people make early on in their careers is that they’re very selective about opportunities so they avoid some prefer others.” She says. “I always accept all opportunities that presented themselves because from each one you can learn something, and they serve as a platform for future endeavors.”
It has also been important, she says, to surround herself with capable, skilled employees who are loyal to the company and committed to results. After nearly 30 years with UPS, it is teamwork, interaction, and staff development that Carranza says is one of the achievements of which she is proudest: “Because that takes focus, determination, sincerity to perpetuate the UPS culture and enhance it through people.”
Carranza’s corporate achievements, determination, drive, innovation, and leadership in business have earned her the distinction of being named Hispanic Business Magazine’s Woman of the year. She credits her parents, both of Mexican descent, with teaching her “the importance of being committed, of working hard, and doing so with a positive outlook,” principles she continue to guide her personal and professional life. The principles mirror those of the company whose corporate leader she has climbed nonstop, an organization she says that values diversity, encourages quality, integrity, commitment, fairness, loyalty, and social responsibility, among other values.
Among Carranza’s worlds of wisdom: “…sit back and listen and observe,” she says. “You learn more by not speaking. Intelligent people learn from their own experiences; with wisdom, you learn from other people’s mistake. I’m very methodical about that.”
Questions:
  1. What are the major skills Jovita Carranza has demonstrated in her career at UPS that have made her a successful leader?
  2. Consider the spiral of experience that Jovita Carranza has travelled. How has her experience affected her ability as a leader?
  3. List out the characteristics of successful leaders. How many of this is demonstrated by Jovita Carranza?
Case: 04: “Paying Attention Pays off Andra Rush”
Paying attention has been the key for Andra Rush. As a nursing school graduate she was paying attention when other nurses complained about unfair treatment and decided she wanted to do something about it—so she enrolled in the University of Michigan’s MBA program so she could do something about how employees were treated. As she completed her business courses and continued to work as a nurse, she was paying attention when a patient described his experience in the transport business. The Business sounded Intriguing, and so, with minimal experience and minimal resources. Rush took a risk and started her own trucking business. She scraped together the funds to buy three trucks by borrowing money from family and maxxing out her credit cards. She specialized in emergency shipping and accepts every job that came her way, even if it meant driving the truck. She paid attention to her customers and made a point of exceeding their expectations regardless of the circumstance. When the terrorist attacks of September 11 shut down local bridges, Rush rented a barge to make sure a crucial shipment for Diamler Chryusler made it to its destination on time.
Rush continues to pay attention and credits her listening skills as a major reason for her success. Rush is distinct in the traditionally white male –dominated trucking industry –a woman and minority (Rush is Native American) who credits her heritage and the “enormous strength” of her Mohawk grandmother for helping her prevail.
“It is entirely possible that my native sprit, communicated to me by my grandmother and my immediate family, have enabled me to overcome the isolation, historical prejudice, and business environment viewed as a barrier to native and woman owned businesses. The willingness to listen, to understand first, and act directly and honestly with integrity is a lesson and code of conduct my elders have bequeathed to me. Being an entrepreneur has reinforced those lessons again and again.’’
Her Mohawk heritage is pervasive. Rush’s company logo is a war staff with six feathers representing the six nations of the Iroquois: Mohawk, Onondaga, Oneida, Cayuga, Tuscarora and Seneca. She believes in the power of a diverse work force and as a result more than half of the 390 employees at Rush Trucking are women and half are Minorities.
Rush Keeps close tabs on her company and its Employees. Thought the company has grown from its humble three-truck beginning to a fleet of 1,7000 trucks, Rush still takes time to ride along with driver. She has provided educational Programs like “The Readers’Edge,” a literacy program, to improve the skills and lives of her employees. Rush is actively involved in several organizations that work to improve the positions of minorities—she’s on the boards of directors  of the Michigan Minority Business Development Council, Minority Enterprise Development/Minority Business Development Agency, Minority Business Roundtable, and has served as president of the Native American Business Alliance.

ICMIND EMBA SOLUTION PAPERS – What are the team’s goals for outputs

ICMIND EMBA SOLUTION PAPERS – What are the team’s goals for outputs

What are the team’s goals for outputs

 

Question:
  1. As we have discussed, competency models describe the behaviors and skills manager need to exhibit if any organization is to be successful. Consider the general competencies found in figure 8.3 and apply these to Andra Rush, providing example of why these competencies apply.
  2. Mentoring has played a role in the careers of many successful minorities in leadership positions. Who could be identified as a coach or mentor for Andra Rush?
  3. Consider some of the self-defeating behaviors outlines in this chapter that contribute to management derailment. What lessons has Andra Rush obviously learned from the failure of others?
Case: 05: “Integrating Terms at Hernandez & Associates”
Marco Hernandez is president of Hernandez & Associate Inc., a full- service advertising agency with clients across North America. The company provides a variety of marketing services to support its diverse group of clients. Whether called on to generate a strategic plan, create interactive Web sites, or put together a full- blown media campaign, the team at Hernandez & associates prides itself on creative solutions to its clients’ marketing challenges.
The firm was founded in 1990 with an emphasis in the real estate industry. It quickly expanded its client base to include health care, as well as food and consumer products. Like many small firms the company grew quickly in the “high-flyinf”1990s, but its administrative costs to obtain and service businesses also skyrocketed. And, as with many businesses, the agency’s business was greatly affected by the terrorist attacks of September 11 and the economic downturn that followed. Clients’ shrinking budgets forced them to scale back their business with Hernandez & Associates and cut backs in staffing meant clients needs more marketing support services as opposed to full scale campaigns.
Hernandez& Associates now faced a challenge—to adapt its business to focus on what the clients were asking for. Specifically, clients, with their reduces staffs, were looking for help responding to their customers’ request and looking for ways to make the most of their more limited marketing budgets. Its small, cohesive staff of 20 employees needed to make some changes and quickly.
As president of Hernandez & Associates, Marco Hernandez Knew his tram was up for the challenge. He had worked hard to create environments to support a successful team—he recruited people who has solid agency experience and he consistently communicated the firm’s mission to his team, he made sure the team has all the resources it needed to success and constantly took stock of the resources. He has built his team as he built his business and knew the group would respond to his leadership. But where to start? Getting the team to understand that growth depended on a shift in how it serviced its clients was not difficult—each of the employees of the small firm had enough contact with the clients that they knew client needs were changing. But making significant changes to the status quo at Hernandez & associates would be difficult. Group roles  has to change—creative folks has to think about how to increase a client’s phone inquiries and Web site visits; account people needed a better understanding of the client’s desire for more agency leadership. And everyone has to have better sense of the costs involved. The company as a whole needed a more integrated approach to servicing their clients if they hoped to survive. Marco needed a plan.
Question:-
  1. Like many leader, Marco has team in place and does not have the luxury of building a new team from the ground up to adapt to the changing business environment his firm is face with, Use the TLM to help Marco diagnose the problems faced by the firm and identify leverage points for change.
  2. Consider the major functions of the TLM—input process and output where do most of the firm’s challenges fall?
  3. What are the team’s goals for outputs
  4. Identify potential resources for Marco and his team in implementing a strategy to change the way they do business at Hernandez & Associates.
Case: 06: “Keeping up with Bills Gates”
Bills Gates inherited intelligence, ambition, and a competitive spirit form his father, a successful seattle attorney. After graduating from a private prep school in seattle, he enrolled in Harvard but dropped out to pursue his passion – computer programming. Paul Allen, a friend from prep school, presented gates with the idea of writing a version of the BASIC computer language for the Altair8800, one of the first personal computers on the market. Driven by his competitive nature, Gates decided he wanted to be the first personal computer on the market. Driven by his competitive nature, Gates decided he wanted to be the first to develop a language to make the personal computer accessible for the general public. He and Allen established the Microsoft Corporation in 1975. Gate’s passion and skill were programming- he would work night and day to meet the extremely aggressive deadlines he set for himself and his company. Eventually Gates has to bring in other programmers – he focused on recent college graduates. “we decided that we want them to come with clear minds, not polluted by some other approach, to learn the ways that we liked to develop software, and to put the kind of energy into it that we thought was key.”
In the early days of Microsoft, Gates was in charge of product planning and programming while Allen was in charge of the business side. He motivated his programmers with the claim that whatever deadline was looming, no matter how tight, he could beat it personally if he had to. What eventually developed at Microsoft was a culture in which Gates was king. Everyone working under Gates was made to feel they were lesser programmers who couldn’t
Compete with his skill or drive, so they competed with each other. They worked long hours and tried their best to mirror Gates—his drive, his ambition, his skill. This internal competition motivated the programmers and made Microsoft one of the most successful companies in the computer industry, and one of the most profitable. The corporation has creates a tremendous amount of wealth—many of its employees have become millionaires while working at Microsoft, including, of course, Bill Gates, currently one of the richest men in the world. During the 1990s, Bill Gate’s net worth grew at an average rate of $34 million per day; that’s $200 million per week.
Gates need a castle for his kingdom and so he built a much talked-about his house on Lake Washington. The house lies mainly underground and looks like a set of separate buildings when viewed from above. The house was conceived as a showcase for Microsoft technology—it took $60 million, seven years of planning and construction, and three  generations of computer hardware before is was finally finished. A feature of the house that reveals a lot about it owner is the house’s system of electronic badges. These badges let the house computer know where each resident and visitor is in the house. The purpose of the badges is to allow the computer to adjust the climate and music and to match the preferences of the people in the house as they move from room to room. What happen when more than one person is in a room? The computer defaults to Gate’s personal preferences.
Questions:-
  1. Would you classify Bill Gates as a charismatic or transformational leader? Why?
  2. Consider followers/employees of gates. What are some of the unique characteristics of Gate’s followers that might identify him as a charismatic or transformational?

Welcome to Answer sheets

 
We at Answer sheets offer all types of online academic assistance, be it homework help, coursework help, case study help, Assignment help, Project Reports, Thesis, Research paper writing help.
And for each service, each subject and each topic, we dedicate an expert writer who has knowledge in that specific field of study. Experience impeccable academic writing service like never before.
Our experts understand that the time of the customers is very precious. The professors of universities and colleges are very rigorous about the submission deadlines of projects or assignments. Hence, the key objective of our case study help service is to deliver the assignments to the customers even before the promised submission deadlines.
We keep the quality measures for all papers which mean we will provide best essays. Our editing services are also excellent. Before submitting any essays, we will check whether the papers writer well or not. The high standards of academic writing will exceed your expectations. With our quality service, we have satisfied more number of people across the world and also work with different universities in Australia, UK, USA, Dubai, Oman, etc.
At our Answer sheets services, our experts are familiar about the formatting styles that are followed in the academic world. Our experts have a great knowledge about the formatting styles such as MLA, Harvard, APA, Turabian, and many others. All types of formats for the case study help are available at our case study help services. In addition, our experts can solve the case studies as per the instructions of the customers.
The experts of our Answer sheets services are highly qualified and professional. We have CAs CFAs & PhD on our panel who have years of experience in the writing of case study / Assignments.
At our Answer sheets services, our experts never plagiarize the content from the other sources for the solutions of case studies. We have strict policies regarding plagiarism at our organization. We have never faced any complaint so far regarding plagiarism from our customers. We use new technologies and modern plagiarism checking software’s to detect plagiarism from our papers.
 
Case Study Solutions, Assignments done by MIB, CA, PhD, & CFA
The experts of our Answer sheets services are highly qualified and professional. We have CAs CFAs & PhD on our panel who have years of experience in the writing of case study. In addition, our experts have the expertise of how a case study should be done by using the information that is mentioned in the case study. All the experts of case study help services are competent and they have all the skills that are required in order to solve a case study. A case study that is solved by our experts looks professional and will surely fetch great grades.
 
O % Plagiarism
At our Answer sheets services, our experts never plagiarize the content from the other sources for the solutions of case studies. We have strict policies regarding plagiarism at our organization. We have never faced any complaint so far regarding plagiarism from our customers. We use new technologies and modern plagiarism checking software’s to detect plagiarism from our papers.
 
Best Price Guarantee
You get premium service at the best market price. Our best price guarantee ensures that the features we offer cannot be matched by any of the competitors, in case they do – “We will beat the price”.
 
Confidentiality
We keep our clients’ personal data confidential. In addition to this payment, info is protected, so you no need to worry about any factors. Feel free to refer to the support team for more information and get some essential details related to the payment methods. Our company aims to keep all your details safe; our advanced security standards will exceed your expectations.
 
Benefits:
Quality Control and Simplicity
We only focus on the quality and offer best quality essays for all time. So you will receive well-crafted and 100% unique content. Need some alterations? You have great chances to get the essays for free.
Direct Communication and Support:
You can easily control the writing process based on your needs; we help you a lot. You can approach our writers directly and requesting drafts. Our dedicated team of experts is available to offer responsive support for 24/7. So just contact us, we ready to help you.

 

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