Quality Management
The situation, involving Cessna is showing how an older firm had become a victim of its own success. This occurred with the company failing to understand, the challenges they were facing inside the marketplace or how to adapt. In 1998, the management decided that a new strategy needed to be utilized to change the mindset and focus of the company (i.e. Total Quality Management). This process involves streamlining operations and reducing waste throughout the entire organization. To fully understand how this works requires carefully examining how Cessna enacted these changes, their results and how this helps to improve logistics / supply chain management. These different elements will illustrate the lasting impacts of the strategy on the firm. ("Our History," 2014) (Plunkett, 2009)
Discuss why Cessna took on this initiative?
Cessna took on this program in order to change the culture and attitudes within the firm. From the 1960s until the late 1990s, the company became known as one the most prominent aircraft and aerospace companies. This resulted in the firm receiving large government and private contracts. At the same time, their airplanes were very popular among civilian aviation. These factors resulted in Cessna experiencing tremendous amounts of demand. This helped company to realize growth rates that were averaging 15% a year during this time. ("Our History," 2014) (Plunkett, 2009)
However, the organization began to experience a slowdown in sales by the mid 1990s. This is because other manufacturers began to compete aggressively against them and the government contracts disappeared. After this happened, is when the firm had trouble adjusting with these changes and started experiencing a dramatic slowdown in earnings. To prevent the company from losing its customers to rivals, a new management team was brought in. Their job was to turn the company around and...
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