Brentwood trucking limited case study solution - Document Transcript
Brentwood Trucking Ltd Executive Summary Brentwood Trucking Ltd. is a holding company for the largest Canadian transportation group. It works on the simple philosophy that is providing the good services and being completely honest and to treat one another fairly and with respect. It was started in central Ontario with the firstjob of transportation of by- products from chemical valley to Toronto. Between early 1950’s and 1985’s, the firm as extended its services to other places and also subsidizes different transportation companies. The firm today operates modern terminal in all major Canadian cities, towns and remote areas. The firm operates over 1500 vehicles moving freight from shippers across Canada to thecustomers. It is also providing its subsidiary companies with the fundamental services such as, human resource, account receivables and payables, training and quality development, etc. Mr. John Moser who was the vice president of training and quality Development for the company was to give the presentation on Cost of Quality to Mr. G.K Alexander who was the President ofBrentwood trucking Ltd. Theexecutive of the company had given approval to Mr. John on instilling quality thinking throughout the organization. Mr. John has come up with three things that can b applied with in the activity of firms to have the concept of quality and that are meaning of quality defects, determination of cost associative with quality defects and development of strategy for addressing quality that will providecompetitive and sustainable advantage for the firm. A Steering committee was formed for the purpose of deciding how to differentiate Brentwood Trucking Company from its competition. Mr. John was the member of the committee and he used Deming quality concepts. He also set up QMTs as a mean of introducing them to the “quality way of thinking.” John also asks the executives to provide the informationregarding the three things he had come up with.
Terminals operations involved the loading and unloading of shipments at central locations. The cost and expense of these terminals is approximately $5.3 million per annum. The cost includes re-deliverance, cost associative with location and layout, extra travels, salaries, hire external cartage, etc. The transportation department handles the highwayoperations of Brentwood Trucking Company to carry shipments from customers to their destinations. Here John here found many facts. The cost occurred per annum is approximately $1 million and it includes accident costs and fines, drivers cost, cost of blocking dock, salaries, etc. The maintenance department was responsible for the repair and servicing of all equipments for the firm. It also deals withthe spare part inventory. The cost associative with maintenance department is approximately $0.3 million. The cost includes packing slips and receipts cards, additional maintenance, etc. The quality department consists of one and half full time people. The task is to act as consultants for various units with in the firm. The cost associated with the Quality department is $0.27 million. The costincludes travel, manuals, salaries, etc. Training department consists of two and half people who were responsible for the development of training programs with in the firm. The cost is $0.14 million and it includes production cost, wages and benefits. The sales and marketing department was charged with the responsibility of quoting rates for services to customers, getting new business, retainingestablished accounts and etc. the total cost of this department is around $5.4 million. Claim department was responsible for settling all claims from customers that resulted from error made by the company in handling the customers’ shipments. The cost per year of this department is approximately $2.1 million. The cost includes cost of damages sustained, travel, salaries and etc. Administration...
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