Qcm Thiokol Case Study Assginment 2

8/8/2019 Qcm Thiokol Case Study Assginment 2

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UNIVERSITI INDUSTRI SELANGOR

QUALITY & CHANGE MANAGEMENT

PMM 5453

ASSIGNMENT 2

Implementing Total Quality Managementat Thiokol Corporation

PREPARED BY:

MD KHAIRUL KHAILANI RAKMAD

(6072012281)

ABDUL MUTALIB DAUD

(6081032571)

NOR LELA AHMAD

(6071041801)

RAZIA BIBI

(6082009391)

SUBMISSION TO:

PROF. DR KHAIRUL BAHAREIN MD NOR


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THIOKOL COMPANY HISTORY TIMELINE*

1929: Thiokol Chemical Company founded.

1945:Charles Bartley, working for the nascentJet Propulsion Laboratory, discovers the

use of thiokol as a stabilizer insolid-fuel rockets.[1] 1949: Thiokol produce the TX-18 Falconmissile, the world's first solid-fueled missile

system.

1957: In anticipation of the forthcoming Minuteman contract, the company builds its

plant at Brigham City, Utah.

1957: Thiokol Huntsville buildsXM33 Pollux missile

1958: Merger withReaction Motors Inc. (RMI), makers of liquid propellant rocket motorsystems.

1958: Thiokol awarded contract to build the TU-122 rocket motor for the first stage oftheLGM-30 MinutemanICBMsystem.

1959: Thiokol Huntsville produces CASTOR strap-on booster rocket, used on theAtlasrocket.

1974: Thiokol wins the contract to build thesolid rocket booster(SRB) for the SpaceShuttle (Nov 29, 1973)

1978: The company sells itsski liftdivision toCTECand its snow equipment division toLogan Manufacturing Company (LMC), owned byJohn DeLorean.

1980: Acquires Carlisle Chemical Company ofCincinnati, Ohio.

1982: Thiokol merges with Morton-Norwich products (owners of theMorton Salt

concern, the Simonizautomotive products brand, and various chemical concerns). Themerged company is called Morton Thiokol Incorporated (MTI).

1986: AnO-ringfault in an MTI SRBdestroysSpace Shuttle Challengerin flight. Thecompany is found at fault for the explosion and destruction of the Challenger and deathsof the astronauts.

1989: Morton Thiokol splits, with most of the chemical concern going with Morton. Thepropulsion systems division becomes Thiokol Inc.

1998: Thiokol changes name to Cordant Technologies.

1998: Thiokol branded polymer products purchased by PolySpec L.P., a Houston basedmanufacturer of Industrial Coatings, Marine Decking, and Subsea Insulation products.

2000: Thiokol merges with two divisions ofAlcoaand with Howmet Castings and HuckFasteners to become AIC Group (Alcoa Industrial Components).

2001:Alliant Techsystems (ATK) Inc. (a company formed whenHoneywellspun off itsdefense division) spends $2.9 billion buying Thiokol and related businesses fromAIC/Alcoa. ATK built the third stage of theTrident missileand had earlier boughtHercules Aerospace Co., builder of the second stage. With the purchase of Thiokol, who

make the missile's first stage, ATK controls the lion's share of the US solid-rocketmarket.

2005, Thiokol wins the contract to produce theAres Ilaunch vehicle first stage for

NASA'sProject Constellation.[1]

2006,Alliant Techsystems(ATK) Inc. renamed ATK-Thiokol to ATK Launch SystemsGroup.

*Source : Wikipedia
http://en.wikipedia.org/wiki/Charles_Bartleyhttp://en.wikipedia.org/wiki/Charles_Bartleyhttp://en.wikipedia.org/wiki/Charles_Bartleyhttp://en.wikipedia.org/wiki/Jet_Propulsion_Laboratoryhttp://en.wikipedia.org/wiki/Jet_Propulsion_Laboratoryhttp://en.wikipedia.org/wiki/Solid-fuel_rockethttp://www.astronautix.com/articles/comlants.htmhttp://en.wikipedia.org/w/index.php?title=TX-18_Falcon&action=edit&redlink=1http://en.wikipedia.org/w/index.php?title=TX-18_Falcon&action=edit&redlink=1http://en.wikipedia.org/wiki/XM33_Polluxhttp://en.wikipedia.org/wiki/XM33_Polluxhttp://en.wikipedia.org/w/index.php?title=Reaction_Motors_Inc.&action=edit&redlink=1http://en.wikipedia.org/wiki/LGM-30_Minutemanhttp://en.wikipedia.org/wiki/ICBMhttp://en.wikipedia.org/wiki/Atlas_(rocket)http://en.wikipedia.org/wiki/Atlas_(rocket)http://en.wikipedia.org/wiki/Solid_rocket_boosterhttp://en.wikipedia.org/wiki/Space_Shuttlehttp://en.wikipedia.org/wiki/Space_Shuttlehttp://en.wikipedia.org/wiki/Ski_lifthttp://en.wikipedia.org/wiki/Ski_lifthttp://en.wikipedia.org/wiki/Doppelmayr_CTEChttp://en.wikipedia.org/wiki/Doppelmayr_CTEChttp://en.wikipedia.org/wiki/John_DeLoreanhttp://en.wikipedia.org/wiki/John_DeLoreanhttp://en.wikipedia.org/wiki/John_DeLoreanhttp://en.wikipedia.org/wiki/Cincinnati,_Ohiohttp://en.wikipedia.org/wiki/Cincinnati,_Ohiohttp://en.wikipedia.org/wiki/Morton_Salthttp://en.wikipedia.org/wiki/Morton_Salthttp://en.wikipedia.org/wiki/Simonizhttp://en.wikipedia.org/wiki/O-ringhttp://en.wikipedia.org/wiki/O-ringhttp://en.wikipedia.org/wiki/O-ringhttp://en.wikipedia.org/wiki/Space_Shuttle_Challenger_disasterhttp://en.wikipedia.org/wiki/Space_Shuttle_Challenger_disasterhttp://en.wikipedia.org/wiki/Space_Shuttle_Challenger_disasterhttp://en.wikipedia.org/wiki/STS-51-Lhttp://en.wikipedia.org/wiki/Alcoahttp://en.wikipedia.org/wiki/Alcoahttp://en.wikipedia.org/wiki/Alliant_Techsystemshttp://en.wikipedia.org/wiki/Alliant_Techsystemshttp://en.wikipedia.org/wiki/Honeywellhttp://en.wikipedia.org/wiki/Trident_missilehttp://en.wikipedia.org/wiki/Trident_missilehttp://en.wikipedia.org/wiki/Trident_missilehttp://en.wikipedia.org/wiki/Hercules_Aerospacehttp://en.wikipedia.org/wiki/Ares_Ihttp://en.wikipedia.org/wiki/Ares_Ihttp://en.wikipedia.org/wiki/Launch_vehiclehttp://en.wikipedia.org/wiki/NASAhttp://en.wikipedia.org/wiki/NASAhttp://en.wikipedia.org/wiki/Project_Constellationhttp://en.wikipedia.org/wiki/Thiokol#cite_note-0http://en.wikipedia.org/wiki/Alliant_Techsystemshttp://en.wikipedia.org/wiki/Alliant_Techsystemshttp://en.wikipedia.org/wiki/Alliant_Techsystemshttp://en.wikipedia.org/wiki/Charles_Bartleyhttp://en.wikipedia.org/wiki/Jet_Propulsion_Laboratoryhttp://en.wikipedia.org/wiki/Solid-fuel_rockethttp://www.astronautix.com/articles/comlants.htmhttp://en.wikipedia.org/w/index.php?title=TX-18_Falcon&action=edit&redlink=1http://en.wikipedia.org/wiki/XM33_Polluxhttp://en.wikipedia.org/w/index.php?title=Reaction_Motors_Inc.&action=edit&redlink=1http://en.wikipedia.org/wiki/LGM-30_Minutemanhttp://en.wikipedia.org/wiki/ICBMhttp://en.wikipedia.org/wiki/Atlas_(rocket)http://en.wikipedia.org/wiki/Solid_rocket_boosterhttp://en.wikipedia.org/wiki/Space_Shuttlehttp://en.wikipedia.org/wiki/Space_Shuttlehttp://en.wikipedia.org/wiki/Ski_lifthttp://en.wikipedia.org/wiki/Doppelmayr_CTEChttp://en.wikipedia.org/wiki/John_DeLoreanhttp://en.wikipedia.org/wiki/Cincinnati,_Ohiohttp://en.wikipedia.org/wiki/Morton_Salthttp://en.wikipedia.org/wiki/Simonizhttp://en.wikipedia.org/wiki/O-ringhttp://en.wikipedia.org/wiki/Space_Shuttle_Challenger_disasterhttp://en.wikipedia.org/wiki/STS-51-Lhttp://en.wikipedia.org/wiki/Alcoahttp://en.wikipedia.org/wiki/Alliant_Techsystemshttp://en.wikipedia.org/wiki/Honeywellhttp://en.wikipedia.org/wiki/Trident_missilehttp://en.wikipedia.org/wiki/Hercules_Aerospacehttp://en.wikipedia.org/wiki/Ares_Ihttp://en.wikipedia.org/wiki/Launch_vehiclehttp://en.wikipedia.org/wiki/NASAhttp://en.wikipedia.org/wiki/Project_Constellationhttp://en.wikipedia.org/wiki/Thiokol#cite_note-0http://en.wikipedia.org/wiki/Alliant_Techsystems


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Question 1

What are the factors of success in the Thiokol case? What did the firm do that led to

improvements in performance?

Thiokol has been implementing the TQ/CI (Total Quality/Continuous Improvement. To

ensure that the process is consistent with business direction, they modified the five year

strategic business plan. Workshops were conducted top down with most supervisors

going through them twice.

Process implementation teams were formed. There are departmental teams and critical

process improvement teams. These teams are responsible to map out selected major

processes, identify root causes of problems and waste, select solutions, and, most

important oversee the effective implementation of those changes.

Improved Processes:

Waste

ThroughputInventory

Operational expenses

Materials

Wait

Labor

Time

S


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The effectiveness are measured and posted on special performance boards throughout the

business unit. Some examples of the macro measures used by THD that showed

improvements levels are rework cost with 63% improvement, customer complaints

achieved 38% improvement, inventory improved 31%, employee suggestions improved

52%, worker-hours/unit has 13% improvement, electricity cost improved 23% and union

grievances showed 35% improvement.

They also implement Employee Attitude Survey and maintain focus on external elemant

of the product and service chain, namely external customers and suppliers. THD also

identified areas as targets for significant improvement such as:

Integration across functional boundaries

Compensation/reward system

Recruitment/selection

Individual job structure

Training/skill development

Organization structure

Evaluation and recognition


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Question 2

What strategy for change did the company use? Did the strategy for change have

anything to do with the programs success?

The company use the Total Quality Management (TQM) as a strategy for change.

Yes, the strategy for change have contributed towards the programs success. Beginning

with a definition of Total Quality, a Vision Statement was written, and a Total

Quality/Continuous Improvement Executive Steering Council was established to oversee

the TQ/CQI process. The process was added to the strategic plan, and employee training

was used to encourage employee involvement, and to familiarize employees with theTQ/CQI process. A unique, cost-effective "just-in-time" training program was instituted.

Departmental Teams formed to articulate supplier-customer relationships, define

customer expectations, evaluate departmental processes, and establish improvement

processes. Critical Process Improvement Teams formed to measure, evaluate, and

improve processes. Customers and suppliers are involved in the design, concurrent

engineering, and new product improvement. All of these TQ/CQI processes are ongoing

at Thiokol. Results after two years include double-digit improvements in indicators,

including a 40 percent reduction in quality costs, and significant reductions in union

grievances, customer complaints, energy costs, and inventory.

In addition, to assess the effectiveness of the total quality process, a variety of measures

are used at both local and macro levels. The measures are posted on special performance

boards throughout the business units and each manager is required to work with their

people to establish improvement measures for their key activities and to keep progress

chart visible in the work area.

Measurements have also become the key to the process analysis that is done by the

process improvement teams. As they map out their existing process, they assess the

amount of time and cost associated with each step in the traditional approach.


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Question 3

Can the increases in performance be sustained if the culture does not change?

Explain your answer.

There are a number of methodologies specifically dedicated to organizational culture

change. These are also a variety of psychological approaches that have been developed

into a system by THD in instilling the culture for specific outcomes such as the

corporate culture evolution. Ideas and strategies, on the other hand, seem to vary

according to particular influences that affect culture.

The other argument is that it is 'leadership' that affects culture rather than 'management',

and describe the difference. When one wants to change an aspect of the culture of an

organization one has to keep in consideration that this is a long term project. Corporate

culture is something that is very hard to change and employees need time to get used to

the new way of organizing. For companies with a very strong and specific culture it will

be even harder to change.

1. Formulate a clear strategic vision

In order to make a cultural change effective a clear vision of the firms new

strategy, shared values and behaviours is needed. This vision provides the

intention and direction for the culture change.

2. Display Top-management commitment

It is very important to keep in mind that culture change must be managed from the

top of the organization, as willingness to change of the senior management is an

important indicator. The top of the organization should be very much in favour ofthe change in order to actually implement the change in the rest of the

organization.
http://en.wikipedia.org/wiki/Leadershiphttp://en.wikipedia.org/wiki/Leadershiphttp://en.wikipedia.org/wiki/Managementhttp://en.wikipedia.org/wiki/Managementhttp://en.wikipedia.org/wiki/Leadershiphttp://en.wikipedia.org/wiki/Management


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3. Model culture change at the highest level

In order to show that the management team is in favour of the change, the change

has to be notable at first at this level. The behaviour of the management needs to

symbolize the kinds of values and behaviours that should be realized in the rest ofthe company. It is important that the management shows the strengths of the

current culture as well, it must be made clear that the current organizational does

not need radical changes, but just a few adjustments.

4. Modify the organization to support organizational change

The fourth step is to modify the organization to support organizational change.

5. Select and socialize newcomers and terminate deviants

A way to implement a culture is to connect it to organizational membership,

people can be selected and terminate in terms of their fit with the new culture.

6. Develop ethical and legal sensitivity

Changes in culture can lead to tensions between organizational and individual

interests, which can result in ethical and legal problems for practitioners. This is

particularly relevant for changes in employee integrity, control, equitable

treatment and job security.

Change of culture in the organizations is very important and inevitable. Culture

innovations is bound to be because it entails introducing something new and substantially

different from what prevails in existing cultures. Cultural innovation is bound to be more

difficult than cultural maintenance. People often resist changes hence it is the duty of the

management to convince people that likely gain will outweigh the losses. Besides

institutionalization, deification is another process that tends to occur in strongly

developed organizational cultures. The organization itself may come to be regarded as

precious in itself, as a source of pride, and in some sense unique. Organizational


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members begin to feel a strong bond with it that transcends material returns given by the

organization, and they begin to identify with in. The organization turns into a sort of clan.

In the THD, in order to give a good atmosphere for cultural change the company has

enhanced its strategy by implementing better compensation and reward program to the

employees together with the good evaluation practice and reward system.

Documents

Qcm Thiokol Case Study Assginment 2