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Deming Case Study Essay

Deming Case Study Essay

1Introduction

1.1Microsoft Background

Microsoft Corporation is a multinational computer technology corporation that develops, manufactures, licenses, and supports a wide range of software products for computing devices. Its most profitable products are the Microsoft Windows operating system and the Microsoft Office suite of productivity software. Microsoft was co-founded by Bill Gates and Paul Allen in 1975.Microsoft rose to dominate the home computer operating system market with MS-DOS in the mid-1980s, followed by the Windows line of operating systems. One of Microsoft’s original mission was “a computer on every desk and in every home, running Microsoft software.

” The company also markets both computer hardware products such as the Microsoft mouse and the Microsoft Natural keyboard, as well as home entertainment products such as the Xbox, Xbox 360, Zune and MSN TV.

1.2The Aim Of Report

The aim of the report is to do an analysis on Microsoft corporation on how the Deming’s 14 point would impact the Company Performance. It will focus on: * Company existing practice * Qualitative degree of Conformance against the 14 points

2.Quality Chain Reaction

3.The 14 Deming’s Point

1st Point

Create Constancy of purpose toward improvement of product and service Plan for quality for the beginning for long-term commitment by continuously provides top quality product or even exceeding it. The organization should always predict and prepare for the any future challenges that are to come. Microsoft is currently applying this practice in their Organization. In the 1980 they come up with MS-DOS the earlier version of their Operating System which evolves to Window 95.Here is where the window-line operating system keeps on evolving until year 2012 with the introduction of Window 8.Every operating system it comes with an improvement. Since the emergence of Apple in the PC industry Microsoft now are having a stiff competition in the area where they used to be dominating since 1980’s. Microsoft needs to maintain this system in order to remain competitive in the PC industry.

2nd Point
Adopt the New philosophy.

Organization need to implement quality not only to its product but to the whole organization process. Rather than reacting to competitive pressure, an organization should focus on the customer need, what exactly they want. The employee of Microsoft been used to all the benefit working with Microsoft such as high speed internet and tend to forget the outside world doesn’t have the luxury they are experiencing and expect the gadget there are using will have the same impact to the outside world.

Problem arises when their product are not well accepted by the public since its unsuitable to them since they are lacking the facility to fully used it, Microsoft need to understand what the people needs first before deciding and producing the product. Produce a product that everyone can use and it needs to be the best product and in good quality. Resource http://www.qbrundage.com/michaelb/pubs/essays/working_at_microsoft.html

3rd point
Cease dependence on inspection to achieve quality.

Deming emphasize that organization need to stop depending on inspection. It is costly and unreliable in the long-run. It function don’t actually improve quality but to find lack of quality. Therefore organizations need to build quality from the beginning of process till its end. Microsoft need to take this into consideration because during Microsoft Surface tablet launching the device crash during its presentation, thus show the incapability’s of its device. If they had implement Quality in the beginning this would had happen. Microsoft should learn from this experience and not depend on inspection during the production. They should ensure any possible problems are eliminated during the production itself from earlier stage by making the sure top quality products are done from every step of the production.

4th point

Move toward a single supplier for any one item on a long-term relationship of loyalty and trust. By having lesser supplier, an organization can focus on the quality of their output. Other than price, quality is another priority when looking for a supplier. Microsoft need to motivate supplier to improve on their quality and when they achieve it look at them as a partner in quality rather than a business connection. Software and application developer need to provide the very best service so that Microsoft can depend on them to even produce a good product themselves.

5th Point

Improve constantly and forever the system of production and service, to improve quality and productivity and this will lead to decrease in cost. An organization need to continuously improve their system and process. Deming encourage the use of Plan-Do-Check-Act approach to do analysis and find ways of improvement. The Organization should emphasize on training and education so everyone can perform better in their jobs to reduce waste, improve productivity, effectiveness and safety.

Currently employee in the R&D department is given the freedom to be creative and innovative in creating Product as long is benefiting the organization. In 2010 spend $9.5 billion for research and development. Microsoft wanted to its employee to be able to find new ways to improve their current product and service. This can be done through training, providing seminar and outsourcing it employee to perform better. 6th point

Institute training on the job

By providing a consistence training toward the people an organization will be able to reduce variation. By providing training on the job they will be able to build a foundation of common knowledge. This allows the worker to understand their roles. Encourage staff to learn from each other.

In some department of Microsoft some employee are lacking the motivation to improve themselves, these employee lack interest to outperform. Microsoft needs to institute training for them in order to improve their capabilities by encouraging them to attend seminar and courses. This would better prepare the Microsoft for any difficulties since these employees will be able to solve the problem with having to consult the top management. This will also improve the quality of their work since they have the knowledge and the expertise to do so.

7th point
Institute leadership-Done

The aim of leadership is to make supervisor and managers to understand their staff or worker and the process they are using. The leader should not only supervise but also give guidance rather than punishment. A leader should know what needed to make the individual work at their best. Microsoft actually had a touch-screen e-reader developed in 1998, but Bill Gates ignored it because he didn’t like the user interface and didn’t represent Microsoft.

The team that developed the reader was told to stop coming up with new ideas and instead work on software for Microsoft Office which is their comfort zone. Only now after touch screen getting so much coverage they start giving it attention. The top management should be encourage those staff who came up with innovation to pursue their invention. If they were to pursue the idea in the beginning, they would be still dominating the gadget industry.

8th point

Drive out fear, so that everyone may work effectively for the company By eliminating fear its throw away people worry and concern of making mistake thus making them able to perform at their best. The organization needs to let its people them know the management will not place blame if mistakes occur. Ensure those who are supervising the worker are approachable. Encourage open communication between manager and employee to make them feel comfortable in expressing their problem.

An article mentions Bosses at Microsoft screams at employees and blaming them for everything, whether it was their fault or not. This creates fear to employee to be cautious when they are working and even driving them to move out of the company. This will have an impact of the quality productivity. Microsoft needs to establish a friendly relation with its employee to ensure their commitment and motivation to perform at the highest level. High morale employee will produce good productivity and service. Resource http://www.businessinsider.com/microsoft-is-filled-with-abusive-managers-and-overworked-employees-says-tell-all-book-2012-5?op=1#ixzz25ZMiHdwh

9th point
Break down the barrier between departments

Each department need to recognize each other department function so they can understand which department depend on which. Rather than Departments trying to compromise, they should focus on collaboration and build a shared vision to achieve this. This would improve teamwork and reduce adversarial relationships. For this point it’s trying to say that there were cases in Microsoft that there are boss of each department at times will be only thinking of their department. Only to maximize the performance of their own department without consulting with other department of how they are progressing. It would impact the outcome of the product. Microsoft need to ensure each department will be able to collaborate with each other to achieve their goal to attain top quality outcome.

10th point
Eliminate slogan and target for the work force -Done

The management need to let its subordinate what they want and not making them to guess. An unclear slogan such as “Excellence in service” confused people which area or what kind of excellence are the organization are pointing at. It would be much clearer if it states “You Can Do Better If You Try”. An earlier mission statement of Microsoft is “A computer on every desk and in every home.”

This doesn’t really tell a clear intention of Microsoft. Soon after a few year the Mission statement changes to “a computer on every desk and in every home, running Microsoft software” .This clearly indicates the intention of Microsoft of providing Microsoft application and software to every computer. This would motivate its worker to work on Microsoft software. Microsoft should now make a clearer message rather than specific Slogan to ensure all it employees understood where the Organization goal and what they wanted to achieve.

11th point
Eliminate management by Objective

The management needs to see how the process is being carried out, not just on achieving its numerical target. Normally an organization production target produces high output but low on quality. Provide them with support and resource so that high qualities of production are achievable. Microsoft has tried this before with the Zune, which was an attempt to compete with iPod. Microsoft Corporation launches the Zune Mp3 player when Apple iPod was in its Prime. This attempt result in failure as Apple product are way better compare to their. Here Microsoft needs to know it not necessary to try to compete with other but focus on the quality which will meet with the consumer preference than they would have a higher chance of success rather than trying to rival its competitors. Resource http://betanews.com/2011/03/14/ipod-didn-t-kill-zune-microsoft-did/

12th point
Remove barrier to pride of workmanship

These points concentrate of the people whose doing the work. It means to allow everyone to be proud of their achievement without being compared from one another. Treat all workers with the same treatment to eliminate competition amongst worker for any rewards. “If you were on a team of 10 people, you walked in the first day knowing that, no matter how good everyone was, 2 people were going to get a great review, 7 were going to get mediocre reviews, and 1 was going to get a terrible review,” says a former software developer.

“It leads to employees focusing on competing with each other rather than competing with other companies.” This is taken from a former employee of Microsoft, their clearly indicates there are favoritism in Microsoft Top management. This encourages rivalry amongst its own staff. Remove this, and then employee will then be able to focus on their job and produce quality product and service.

13th Point
Implement education and Self-Improvement

With this point, the management should focus on improving the current skill of its employee. By encouraging them to learn new skill and knowledge it will better prepare them for future challenges and changes In Microsoft Corporation they are lacking the motivation to be more innovative nowadays. They are more concern to preserves their existing product such as extending their office application, Window Operating system and increasing server software window server. Microsoft is not too fond of taking risk into making new product and service. It took them years to come up with Microsoft surface tablet when other developer such as Samsung and Apple’s been doing it for a few years already. They need to implement the 13th point so that its employee will be able to improve their ability and knowledge so that the organization can cope with changes in the future.

14th point
Make Transformation everyone’s Job

Everyone in the organization have to make changes, the organization will improve overall by having each person in the organization is motivated to produce better quality. To achieve this management will need to make changes in the management principle by applying the Deming’s 14 point into their system. Microsoft needs to analyze each small step and understand how these steps contribute to better quality. Everyone from the lower ranking worker to the top ranking should be able to contribute to their fullest.

4.Conclusion

To conclude all Microsoft corporation need to implement the 14 Deming point to ensure its survival in its industry which it previously dominate. For the research done on Microsoft corporation , there are some major area that they need to gives attention too and Deming 14 point will be able to provide a solution if it is to be applied in the proper way. The success of this method will depend on the top management to its lower ranking worker of how well they can adopt to Deming philosophy.

5.Reference

Book
Mary. Walton (1986) ,The Demings Management Method
Dennis F. Kehoe (1997) The Fundamentals Of Quality Management 2nd Edition

Website
• Hci.com.au (1960) Deming’s 14 points. [online] Available at: http://www.hci.com.au/hcisite2/articles/deming.htm. [Accessed: 29 August 2012].
• Deming 14 points Philosophy. Available at http://www.mindtools.com/pages/article/newSTR_75.htm. [ Accessed: 27th August 2012].
• Deming’s approach is summed up in his famous 14 points. Available at http://www.1000advices.com/guru/quality_tqm_14points_deming.html. [Accessed: 30th August 2012].
•Information of Microsoft available at:
http://www.winsupersite.com/article/windows-server/microsoft-just-like-ibm http://www.about-microsoft.com/ [Accessed:25 August 2012]
•Information for Microsoft Surface available at:
http://psynixis.com/blog/2012/06/surface-the-problem-with-the-microsoft-tablet-vision •Information on former employee complain
http://betanews.com/2010/02/09/why-former-employees-say-microsoft-can-t-innovate/ [Accessed:25 August 2012] http://www.businessinsider.com/microsoft-is-filled-with-abusive-managers-and-overworked-employees-says-tell-all-book-2012-5?op=1 [ Accessed:25 August

Apple Inc. in 2010: the Competitive Advantages of Apple Essay

Apple Inc. in 2010: the Competitive Advantages of Apple Essay

Q1. The competitive advantages of Apple are the user-friendly interface, the new design, the innovation functions, the creator of personal computer and their long history brand name. The most important is their marketing strategy.

As the creator of personal computer in the industry, Apple deliver a high quality product to market, they make loyalty to consumers, make people feel what they get more than what they paid. Although, the selling price was not lower than the other computers. Apple’s customers really “love” the products.

Attractive designs was one of the key points of Apple, they attention to details of computer, their iMac is the all-in-one design, when everyone thinks computer at least have two parts, the iMac were everything at once. It changed people’s thinking, and reforms the computer industry.

Over the year, Apple use the Intel-powered computers in their product line to increase the market share, at the same time it solve the disadvantage to choose Apple’s product is the lack of Macintosh software.

From hardware to create a user-friendly interface, people can install Microsoft window applications as well. Apple didn’t stop their innovation, later on some applications create by Apple even faster than Microsoft.

The most stronger competitive advantages is the marketing strategy, Apple focus home consumers’ lifestyle, although they are not the top computers in the market, but Apple try to blend into people’s life, focus on what people needs rather than selling the functions of products. It makes consumers feel good and easy to carry, then want to try on it.

Apple setup apple store and website for consumer face-to-face try their product and order directly, the purpose for people to try not only focus on the loyalty customer, is for the other haven’t try Apple’s product before, people can do the experience of i-products. Doing so can have an advertising effect and can be used for direct selling to eliminate middleman part, control the price better.

Most successful company has their brand ambassador, Apple also have their own, it was Steve Jobs – the key and the “soul” of Apple. Every time when Apple have the announcement for the new product, Jobs will come up and host for the presentation, the CEO do the presentation makes people feel is there any special thing, Jobs become the icon for Apple, he attract people’s attention, this action makes consumers exciting Jobs briefing.

All these points are something intangible resources of Apple, of course is not the only reasons of Apple successful, but all of these cause Apple’s product are non-substitutable, valuable, rare and costly-to-imitate, other competitors are hard to do so, that’s why Jobs invest a lot of their R&D because it is the core competencies of Apple.

Q2. Here are the analyze for the personal computer industry of Apple’s dynamics favorable or problematic.

Bargaining power of Supplier: CPUs were the hardware of PC, the functions like human brain for the process, it is master of a PC. In the Microprocessors and Operating system filed Intel and Microsoft are leading the market, the PCs in the market almost use the Intel CPU and the Microsoft application, in order to pander to the market. Apple shift to Intel CPUs in 2006, from now on Apple’s laptop can use Microsoft application. Due to no other CPUs can competed with Intel at this time, the bargaining power of supplier are strong.

Bargaining power of buyers: Nowadays PC is the needs in daily life, the largest group consumers are home consumers, concern about the design, mobility and wireless, but the outlay or the feature almost the same. But Apple’s Macintosh was different, it is a “Digital Hub” it is a digital cameras, portable music players and digital camcorders, brings people into a digital lifestyle, this idea must PC get away from a machine, it can be more fun. And then Apple introduce a new OS, it keep update every 12 to 18 months, it is greater frequency than other PC vendors. As mentioned, the bargaining power of buyers is low.

Entrants: In PC market, the brand name are really important, the buying likelihood maybe force to the big brand. New comers may not have a high market share because office and existing customers may have a loyalty and think of the maintence issue.

Apple as a leader in the personal computer, it has invest a huge amount and resources for develop the Mac and the OS system, other PC vendors cannot compare with Apple and the products are so different from the traditional PCs, is not a short can be imitate. So the entry barriers are high.

Threat of substitute products: At this moment, there is no substitute products of Mac, Mac is a general tools, multifunctional machine people may threat other machine rather Mac or PC.

Intensity of Rivalry among competitors: Slow industry growth and the commoditization makes a price-competition in PCs, but Mac come out brings a new experience to consumers, design, features, after sell service more high level, no longer stay in the hardware competition.

Steve Jobs always bring new ideas to the world, so people will look forward to Apple, the loyalty were building up. Thus, Apple has a high intensity of rivalry.

In summary, Apple Mac is unique and different from the existing personal computer, Apple’s successful based on the differentiation strategy and innovation.

Q3.PC is one of important symbol in digital age. It changes our daily life and working style. Apple is the original innovator. Apple Computer has professional impressions on creative multimedia field. It also has very good user interface to interact with human. Last time, IBM and Microsoft group together to product lower cost PC to gain the PC share market. In 2000, Apple creates their PC as digital hub. This idea has revolutionary change in PC market and changed the PC eco system.

The iTunes software is a soul of digital hub idea. This is the first program to buy a song from legal way in digital format in the world. There are many publishers to publish their songs and movies from iTunes software. All of the new portable products such as iPhone, iPad and iPod are using iTunes as a agent to transfer data such as songs, movies, photos and backup data between PC and portable devices.

Apple makes their PC to compatible with IBM PC by working with Microsoft to provide the capability to use software such as Microsoft Office. Also, they co-operate with Intel to tailor made CPU for making high performance and more energy efficient PC to draw customers’ attention and as market focus point on this product.

In order to show their differentiation, they launch a facetime (video conferencing) program in their PC. This program can easy connect with their portable devices to have facetime seamlessly. This is very difficult to replicate from other competitors. I believe thatApple’s competitive position issustainable and still as industry leader.

In MP3 player industry, Apple also does a mission that this product can purchase songs and videos online legally. iPod (Apple’s MP3 player) not also can play songs, it also can play videos and games. It becomes a multimedia player in portable size. There is strategy effect comes up with purchasing songs and videos from iPod can play on different Mac devices such as Macbook and iPhone. Customers feel that they get premium value on purchasing single song from itunes. I believe thatApple’s competitive position issustainable and still as industry leader.

Q4. Nowadays, smartphone is one of important devices for metropolis people. The role of smartphone is not as simple as before to make a phone call only. It has a lot of add on feature and ancillary apps to support the smartphone system. In this rapidly changing environment, company wants to keep making profits is a strategic plan to survive even as anindustry leader to drive the game. We try to Base on VRIO framework to assess Apple’s competitive position in smartphone industry.

Apple is an IT company with different kinds of products. Its valuableresource and capability is superior brand name and innovation products. Apple’s products are symbol of high end technology and user friendly, also their products always see as arts. Loyalty customers always support and buy Apple’s products. Of course, Apple’s products always come with excellent feature and powerful performance can draw the customers attention no matter they are Apple fans or not. Also, their products can make their customers’ life easily even getting better result on working. These are mostvaluableresourcesandcapabilities of Apple Company.

In IT industry, Apple always launches the innovation products. They always have a role of leader and pioneer in IT industry. The strong and elegantstrengthen glass as smartphone surface and come up with thin and unibody shape of smartphone. That is a amazing product. Additionally, the display unit of apple smartphone has high resolution (Retina display). It makes wonderful look and feel. The customers feel that this smartphone is worth to get it with extra dollars amount. At the back end, there has a great after sales service support team to support the product. Their staffs have wide knowledge to answer customers’ questions. The excellent smartphone and coming with strong support service is rare in smartphone industry.

This is not difficult to understand their smartphone system will beimitated easily. It is because apple’s smartphone is coming with inimitability ecosystem and bundle a lot of usage Apps, competitors are very difficult to imitate their system. First of all, Apps store is one and one official place to buy iphone apps. Only iphone can be used Apps store to buy apps, other smartphone cannot use it. Secondly, itunes is the first place that we can buy and download legal songs website and system in the world. It can interact with iphone easily. Most of publishers use this platform the launch their new songs and movies. On the other hand, if they followers without iphone, they cannot get the new songs and movies ASAP. Therefore, this is one of the inducements to attract customers to buy an iphone. This ecosystem is very difficult to imitate from other competitors.

From the resource-basedview, Apple also takes very high priority on research and development. They know that if they want to draw customers’ attention, they must bring the innovative products to the market and customer. They always carry the new trend and design to the market.We can see that the strengthen glass on smartphone, unibody design on smartphone and high-resolution display unit (retina display).

In conclusion, Apple still possesses high competitive position in smartphone industry. However, they must keep launching innovation products to keep the leadership position in this rapidly changing industry.

Q5.iPad is a innovation product in the IT industry. It carries useful and high-end technology dissolve into our daily life. It makes our life easily no matter on studying, working and entertaining. It will keep stable growth rate in feather.

In order to maintain the premium brand image, Apple will not compete and focus on product price with competitors. At the mean time, iPad can delivery a premium value to customers. You can see that Apple is one and only one company to use the very high definition display unit (Retina display) on tablet product (iPad) in the industry. It can delivery outstanding look and feel to customers. Also, they focus on the whole product collaboration and take care the customers experience on using their product.

In order to take care of customers on using iPad, they have excellent after sale service support team to support customers on using their product. They hope that their customers can fully utilize on their products with wonderful comment. They will share their professional technical skills when you have any enquiries on iPad. On the order hand to attract potential customers, they will open shops in famous shop mall with very grand look and feel to draw their potential customers attention. In their shops, the product expert is standby to teach and show their products are how easy to use and how powerful on feature and performance. From users point of view, this product is not easy to substitute with similar tablet product because there are huge valuable bundle package and service behind the products.

Except the excellent hardware, Apple also provides huge number of ancillary software (Apps) to support the iPad. We can see that one of the fantastic features is Facetime (Video conferencing). Before Facetime launch to market, we keep using the webcam on computer with third party software with low video resolution and poor sound quality to perform video conferencing or web chat. After Facetime launched on iPad, iPhone and Mac machine, we can perform video conferencing from handy device without to concert the hardware, software and audience compatible issues. This benefit is coming from unibody design (software, hardware and system are designed from single company). It is very difficult to replicate similar model from other company.

Let’s talk more on Apps. When we had purchased Apps (software can be used on mobile device) from Apps Store, most of Apps can also be used in iPhone. Customers feel that I can get the premium value from that because they paid once for software can execute on more that one device. Also, iPad can share information by using Apple iCloud service. This is a huge storage in the Internet. You can get what you done on your Mac Laptop synchronously such as photos, schedule and documents. Synergy effect is appeared when customers are using Apple’s products.

In conclusion, iPad is a sustainable product in Apple Company even in IT industry.

Comparison of Us Ceos and Ceos in Other Industrial Countries Essay

Comparison of Us Ceos and Ceos in Other Industrial Countries Essay

Nowadays, more and more people question whether US CEOs are overpaid compared to CEOs in other industrial countries or if they are paid fairly and deserve a larger share of the wealth they helped their companies earn. With the development of a global capitalist economy, laborers pay in the free market is increasing continuously. However, CEO pay increase is not in alignment with the average US worker’s pay increase, as Garofalo pointed out, “In 2011, US CEOs in the Fortune 500 made an average of $12 million, about 380 times what the average worker makes.

This number increased from 343 times in 2010” (Garofalo, “Average Fortune”). When we compare the U.S CEO-to-worker ratio with other countries, the result is more shocking: In Japan, the CEO-to-worker ratio is 11:1; in Germany, 12:1; in Canada, 20:1, respectively. However, the U.S ratio approaches to 475:1 (Tampa bay Times). Are U.S CEOs really paid based on their actual performance? The answer is no. For example, from the article named “Introduction of GM”, the whole sale of GM decreased by 23% in 2008.

However, GM’s CEO pay was as much as 200 times what a common worker would have; while at Toyota, it was only about a twentieth of what a worker earned (Yglesias, “Comparative CEO Salaries”). In 2008, GM’s CEO had $14.4 million in compensation, but the pay of Toyota’s CEO was under $1 million in the same period (Joules, “News vine”). Another example is William Weldon, the CEO of Johnson & Johnson. In 2011, “J&J has been battered by 22 product recalls in 19 months because of the quality issues” (McIntyre, “American’s most overpaid”). The net earnings of J&J went down from 13.3 million in 2010 to 9.7 million in 2011. However, William Weldon still earned approximately 26 million in 2011, almost the same amount as his previous year (“JNJ| Income statement”). Some people believe that U.S CEOs are not overpaid, especially the good CEOs such as Steve Jobs. When Jobs returned to Apple as an interim CEO in 1998, the stock price was only $2.

However, because of his innovation, the products that he promoted such as iPhone and the whole i-series had brought Apple from near bankruptcy to extreme profitability. During the past 15 years, the growth rate of Apple’s stock price increased 235 times. Moreover, Apple’s annual revenue in 2012 reached $156.51 billion compared to $6.2 million in 2003 (Apple Inc.). Although Jobs only earned $1 annually, he held $5.43 million Apple shares worth $2.1 billion. Forbes estimated his net wealth at $8.3 billion in 2010 (“Steve Jobs”). Since Jobs had brought huge profits to Apple, he was considered worth the annual shares given to him by Apple as the company’s earnings were heavily based on his contribution and performance.

To resolve the problem that US CEOs are overpaid, audit by independent board members is an important measure to ensure proper executive pay policies. Human Resource needs to play a key role in the distribution of fair wages. As author Crisp suggested, “When recruiting a CEO, HR can build a track record of taking action on the performance and contribution” (Crisp, “Is HR living up”). While setting up the salary of a CEO, HR can take the records of the CEO’s previous performance and pay as a reference. This also requires HR to do a solid research and then develop realistic compensation plans. Promoting this approach is a big challenge for an HR executive, yet it is a good opportunity to compensate fairly relative to earnings and in the long run, corporate survival may depend on it!