￼Total Quality Managemen
Cost of Quality: Pinewood
Charles Mentzis Tong Xie
Mubarak Tiibaa Daniel Hummelsund
This group report examines Pinewood Technologies PLC’s cost of quality. Pinewood offer a dealer management system (DMS) called Pinnacle to retailers in automotive industry, offering a wide range of features integrated in one software.
We have examined Pinewood’s cost of quality by following the Six Sigma framework DMAIC, utilising Project Charter, Cause and Effect Diagram, 5 Whys and Affinity Diagram. To start off the project we spent the first day at their offices, where we were given an induction talk by Tim Barney, Pinewood’s ...view middle of the document...
The executive summary is an overall summary of the whole report, and should be able to stand on its own. By the end of this section, the reader should be clear on the key recommendations, how they have been arrived at. The process you have gone
￼through as a team, along with a summary of the data you have collected and the associated analysis should be presented.
Total Quality Management (TQM) is an initial approach of quality management in which the objective consists of obtaining a very wide mobilisation and implication of the entire company in order to reach a near perfect quality by reducing as best as possible most the waste and by permanently improving the process as a whole.
This approach is based on ISO 9004:2009 “Managing for the sustained success of an organization - A quality management approach”.
Our groups task in this module was to investigate on Pinewood’s cost of quality. In other words our job was to find out the costs related to quality improvements achieved as a result of efforts. However, cost of quality also takes into account the cost of errors and deficiencies.
Pinewood is a centrally hosted software and technology provider to retail motor industry, founded in 1981. The software this company provides is called Pinnacle, a dealer management system (DMS) which was created exclusively for the automobile retail industry. It essentially helps facilitate the whole process of the retail motor industry as it is implemented with very useful tools such as customer relationship management (CRM), inventory management, financial control and many more.
This software is an online service, and no hardware is needed. Indeed the system is bought and updated online which makes transactions and communication much easier. The updates are free for all those who have already bought Pinnacle and can be downloaded of the internet. All of these technology implementation contribute to Pinewood’s reputation as a high quality standard organisation. Furthermore Pinewood has developed a training program for all the new starters in the company. It is named after the path that leads to Everest’s base camp: The Khumbu trail. This
￼could be a metaphor for the minimum training required to reach the base camp of this organisation. This program consists in making new employees familiar with the system the company uses and therefore facilitate integration and efficiency.
Pinewood has four offices, three in the UK: Nottingham, Derby and Solihull and one in South Africa situated in Cape town. The Cape Town office has a particularity, it serves as an emergency back-up facility. Indeed, if the servers in the UK offices were to crash all the data would automatically be stored in the Cape Town office which would allow the online software, Pinnacle, to keep running and not lose any customers. However we will only be investigating the Solihull office’s cost of quality.
Throughout this investigation of the Solihull office we decided to use the DMAIC