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Operation Management
Final Project SGI
Team A

Quality management
Strength
1. The executives of Sogang Grocery Inc. (SGI) have over twenty years of experience in the industry along with a MBA degree.
This is a major strength for SGI because the management/leadership of a company is one of the most important components to a successful business. Due to the immense amount ofexperience and knowledge executives at SGI have they will know how to manage many of problems that SGI might face in the future with quick decisive and effective action. They also will know how to best improve SGI’s quality management by being able to understand the changing customer needs and wants and by spotting areas of improvement within the company.

Weaknesses
1. Workers are spending toomuch time conducting paperwork
An excessive amount of paperwork prevents the workers of SGI from using their time efficiently. For example, SGI has very experienced and intelligent executives. However they will be unable to use their expertise in managing internal and external problems as well as improving the company as a whole if they are using too much of their time on processing paperwork. Inthe same way SGI’s workers will not be able to spend the optimal amount of time on ensuring that each order is carried out correctly and that the customer is satisfied. Without the necessary amount of time workers and executives may miss changing customer needs, flaws in the products, and other quality management components. This in turn will cause a decline in the quality management of SGIbecause of the lack of core principles such as leadership, continual improvement, and people involvement. In fact, ISO 9000, the set of international standards on quality management and quality assurance, states that to keep quality management at its best the company should ensure that it knows the customer’s need and want for the product. Workers should always be enthusiastic in communicating with thecustomers to figure out what they really want. Another problem with the paperwork would be a lack of communication amongst employees. Leadership may start to slack and necessary information will not be shared within the company. ISO 9000 discloses that two of the eight essential factors in keeping good quality are leadership and people involvement.
Executives do not come to see the factory floorbut working in the office to do their paperwork. Lack of communication between boss and workers in the workplace is a big issue. If workers are not communicating enough with the boss, it can lead to the producing the defect products and also less efficient of the work because of the stress1.

Proposal
It is obviously necessary to have paperwork; however, not everyone should be involved inthis work. SGI must restructure by either hiring new workers who’s job is to focus on paperwork or to redistribute work amongst current employees so a few worker’s are doing most of the paperwork. This will allow the other workers and executives to focus on their specific jobs leading to better overall quality management. Executives will be able to spot problems and areas for improvement whileworkers will be more attentive to changing customer wants and needs. There will also be an increase in the communication with the company, which will directly lead to better quality management.

2. Workers in SGI warehouse have been suffering by working too many hours.
This can be a big problem and a negative thing for SGI because overworked employees could directly lead to a decrease inquality management. This problem will create low quality work, which will lead to defective products, subpar service, poor designs, shoddy workmanship, and substandard parts and materials. There will also be an increase in defects meaning that SGI has to pay both internal and external failure costs, which could hurt profits. The company will incur scrap costs, re-inspection costs, re- testing costs,...