Case: Wengart Aircraft

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Case: Wengart Aircraft I. Problems A. Macro 1. Wengart Aircraft should mandate total quality management throughout the whole company. All groups should be embracing this change including the CEO and other top managers must visibly support Total Quality Management (TQM), which is not happening by existing President Ralph Larsen because he is more alarmed with improving profits. Larsen wants to spend his time trying to increase profits for Wengart Aircraft. His yearly bonus is totally based on the profits. Since he spending his energy in other places instead of investing his time in implementing TQM but Larsen thinks he is not needed to lead the team. Larsen should spend more time making sure the company’s customers are happy with the quality and the profits will come. 2. Wengart Aircraft has been spending a lot of time on rework and that is now acceptable in their company. This has had a different effect of how the customers feel and they are now complaining about this need for rework and lack of quality from Wengart Aircraft. They need to change their corporate culture to reflect the need for quality the concept of TQM cannot be successful going forward. Corporate culture must support continues improvement and quality needs to be seen as a way of life. B. Micro 1. Profits are not where they need to be with the quality issues and could continue to decrease if there are not improvements to the quality. The Secretary of Defense sent a letter to Larsen stating that if there is not a 20% quality improvement in the next six months the government will exercise its contract provision to withhold partial payment as a penalty. 2. Wengart Aircraft top management officials are worried about the increasing of profits because of their bonuses. The President Ralph Larsen stated that he didn’t have time to get involved in the implementation of TQM because he needed to
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