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Essay / Case Report - Longxi Machinery (China) - 1526
IntroductionChina is potentially a huge market for small diesel engines. Sales of diesel-powered agricultural machinery and vehicles have increased more than 10% annually since 1985, and this growth rate is expected to continue at least until 2000. 85% of equipment uses single-cylinder diesel engines, while the rest use multi-cylinder engines. those. In the multi-cylinder diesel market, competition is less intense due to excessive demand. The outlook is much more promising. Longxi has a certain competitive advantage in this market, resulting from its popular product such as the SL2100. Quality of Machines on the Market Before 1978, manufacturers and customers paid little attention to the quality of diesel. Later, they realized the importance of quality. Poor quality products can cause customers to lose production time due to motor failure. They can also cause manufacturers to delay engine production and incur high repair costs. Quality will therefore have increasingly important implications for the future business of all manufacturers, including Longxi. Total Quality Management at Longxi Total quality management is a valuable asset for Longxi, provided it provides a competitive advantage over most other competitors. However, Longxi still needs to improve the quality control system to meet the industry accepted standards, namely ISO9002, in order to further expand into overseas markets. First, senior management was clearly aware of the importance of quality control. The company is one of the first companies to have a vision of quality control in China. And the general manager had undergone modern management training abroad, which led him to focus on establishing quality control procedures. Second, after years of quality control practice, the company has established a well-known quality control procedure, "the method". It has great value for the company as it includes detailed best practices for production procedures that ensure and improve product quality. It is an effective decision measurement tool and excellent training material. Third, Longxi conducts an intensive training program for its employees and there is a well-established reward system to motivate people to improve quality. This policy is quite effective in involving all employees in quality improvement procedures, which will result in great benefits for the company. But there are still some concerns about quality management: First, there are no external quality or process auditors. Internal auditors have often been under great pressure to report quality defects. For example, QC should close affected product lines when they find defects, but in real cases they hardly dare to do so..