Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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please determine and relate any three technological inventions that could have an impact on Santa Cruz Guitar Co. business functioning.
![For companies further removed from the long-term satisfaction of customers, it's easier to let
quality control slide. Yet there are plenty of ways in which growing manufacturers can pursue
both quality and sales volumes simultaneously. Artisan instrument makers the Santa Cruz Guitar
Co (SCGC) prove a relevant example. Although the California-based company is still a small-scale
manufacturing operation, SCGC has grown in recent years from a basement operation to a serious
business.
14 - Craftsmen employed by SCGC
800 – Custom guitars produced each year
Owner Dan Roberts now employs 14 expert craftsmen, who create over 800 custom guitars each
year. In order to ensure the continued quality of his instruments, Roberts has created an
environment that improves with each sale. To keep things efficient (as TQM must), the shop floor
is divided into six workstations in which guitars are partially assembled and then moved to the
next station. Each bench is manned by a senior craftsman, and no guitar leaves that builder's
station until he is 100 percent happy with its quality. This product quality is akin to a traditional
assembly line; however, unlike a traditional, top-to-bottom factory, Roberts is intimately involved
in all phases of instrument construction.
Utilising this doting method of quality management, it's difficult to see how customers wouldn't
be satisfied with the artists' work. Yet even if there were issues, Roberts and other senior
management also spend much of their days personally answering web queries about the
instruments. According to the managers, customers tend to be pleasantly surprised to find the
company's senior leaders are the ones answering their technical questions and concerns. While
Roberts has no intentions of taking his manufacturing company to industrial heights, the quality of
his instruments and high levels of customer satisfaction speak for themselves; the company
currently boasts one lengthy backlog of orders.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F8ef73a85-8df5-4d0d-ac3c-a5ff5a2158b1%2F37112f5e-f5c5-4c11-9da1-a5839f299ad6%2Frs5mfr4_processed.jpeg&w=3840&q=75)
Transcribed Image Text:For companies further removed from the long-term satisfaction of customers, it's easier to let
quality control slide. Yet there are plenty of ways in which growing manufacturers can pursue
both quality and sales volumes simultaneously. Artisan instrument makers the Santa Cruz Guitar
Co (SCGC) prove a relevant example. Although the California-based company is still a small-scale
manufacturing operation, SCGC has grown in recent years from a basement operation to a serious
business.
14 - Craftsmen employed by SCGC
800 – Custom guitars produced each year
Owner Dan Roberts now employs 14 expert craftsmen, who create over 800 custom guitars each
year. In order to ensure the continued quality of his instruments, Roberts has created an
environment that improves with each sale. To keep things efficient (as TQM must), the shop floor
is divided into six workstations in which guitars are partially assembled and then moved to the
next station. Each bench is manned by a senior craftsman, and no guitar leaves that builder's
station until he is 100 percent happy with its quality. This product quality is akin to a traditional
assembly line; however, unlike a traditional, top-to-bottom factory, Roberts is intimately involved
in all phases of instrument construction.
Utilising this doting method of quality management, it's difficult to see how customers wouldn't
be satisfied with the artists' work. Yet even if there were issues, Roberts and other senior
management also spend much of their days personally answering web queries about the
instruments. According to the managers, customers tend to be pleasantly surprised to find the
company's senior leaders are the ones answering their technical questions and concerns. While
Roberts has no intentions of taking his manufacturing company to industrial heights, the quality of
his instruments and high levels of customer satisfaction speak for themselves; the company
currently boasts one lengthy backlog of orders.
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