Motorola is known as a company that saved itself. They are one of the companies mentioned in the 1980 television documentary on productivity, If Japan Can, Why Can't We? This program illustrated the quality and productivity problems of numerous companies. In the 1970s, Motorola produced television sets with a defect rate of 150 defects per 100 sets. In 1974, Motorola sold their television plant to Mitsushita. Using the same American labor force and Japanese quality management techniques, television sets were produced with an average of only 4 defects per 100 sets. Motorola continued to produce two-way radios, pagers, cellular radiotelephones, and other elec- tronic communication systems. In the 1980s, customers complained that Motorola's paging systems were not meeting quality standards; Japanese-made pagers were. Top Motorola executives could ei- ther continue losing customers and market share to Japan, as they did in consumer electronics dur- ing the 1970s, or they could develop a new company culture and insist on TQM. Motorola restated company goals for quality improvement of processes, global market share, and employee involvement. They invested heavily in training, with each employee (top-down) required to take a minimum of forty hours of training each year. They promoted a quality culture by provid- ing workers with a greater degree of job security. Employees are no longer fearful of making sugges- tions or even suggesting ways to eliminate their own jobs. 1. Giving people authority to make decisions and take actions does not mean they will make good decisions. How or what can be done to help? Why is removing fear helpful? 2. Managers basically want their company to do well. Why do many managers drift away from TQM or fail to implement basic elements of TQM? 3. What motivated Motorola to change? Why could they do it when other companies have failed? 4. In the 1970Os, do you think Motorola lost touch with employees? Customers? Process? Give an example of each.
Motorola is known as a company that saved itself. They are one of the companies mentioned in the 1980 television documentary on productivity, If Japan Can, Why Can't We? This program illustrated the quality and productivity problems of numerous companies. In the 1970s, Motorola produced television sets with a defect rate of 150 defects per 100 sets. In 1974, Motorola sold their television plant to Mitsushita. Using the same American labor force and Japanese quality management techniques, television sets were produced with an average of only 4 defects per 100 sets. Motorola continued to produce two-way radios, pagers, cellular radiotelephones, and other elec- tronic communication systems. In the 1980s, customers complained that Motorola's paging systems were not meeting quality standards; Japanese-made pagers were. Top Motorola executives could ei- ther continue losing customers and market share to Japan, as they did in consumer electronics dur- ing the 1970s, or they could develop a new company culture and insist on TQM. Motorola restated company goals for quality improvement of processes, global market share, and employee involvement. They invested heavily in training, with each employee (top-down) required to take a minimum of forty hours of training each year. They promoted a quality culture by provid- ing workers with a greater degree of job security. Employees are no longer fearful of making sugges- tions or even suggesting ways to eliminate their own jobs. 1. Giving people authority to make decisions and take actions does not mean they will make good decisions. How or what can be done to help? Why is removing fear helpful? 2. Managers basically want their company to do well. Why do many managers drift away from TQM or fail to implement basic elements of TQM? 3. What motivated Motorola to change? Why could they do it when other companies have failed? 4. In the 1970Os, do you think Motorola lost touch with employees? Customers? Process? Give an example of each.
Chapter1: Taking Risks And Making Profits Within The Dynamic Business Environment
Section: Chapter Questions
Problem 1CE
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Transcribed Image Text:Assessment: Activity 1: Individual Case
Motorola is known as a company that saved itself. They are one of the companies mentioned in the
1980 television documentary on productivity, If Japan Can, Why Can't We? This program illustrated
the quality and productivity problems of numerous companies.
In the 1970s, Motorola produced television sets with a defect rate of 150 defects per 100 sets. In
1974, Motorola sold their television plant to Mitsushita. Using the same American labor force and
Japanese quality management techniques, television sets were produced with an average of only 4
defects per 100 sets.
Motorola continued to produce two-way radios, pagers, cellular radiotelephones, and other elec-
tronic communication systems. In the 1980s, customers complained that Motorola's paging systems
were not meeting quality standards; Japanese-made pagers were. Top Motorola executives could ei-
ther continue losing customers and market share to Japan, as they did in consumer electronics dur-
ing the 1970s, or they could develop a new company culture and insist on TQM.
Motorola restated company goals for quality improvement of processes, global market share, and
employee involvement. They invested heavily in training, with each employee (top-down) required
to take a minimum of forty hours of training each year. They promoted a quality culture by provid-
ing workers with a greater degree of job security. Employees are no longer fearful of making sugges-
tions or even suggesting ways to eliminate their own jobs.
1. Giving people authority to make decisions and take actions does not mean they will make
good decisions. How or what can be done to help? Why is removing fear helpful?
2. Managers basically want their company to do well. Why do many managers drift away from
TQM or fail to implement basic elements of TQM?
3. What motivated Motorola to change? Why could they do it when other companies have
failed?
4. In the 1970s, do you think Motorola lost touch with employees? Customers? Process? Give
an example of each.
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