CASE 2: AIR QUALITY SYSTEMS Inc. Time Context: August 6, Wednesday Point of view: Patrick Wallace, plant manager at Air Quality Systems Inc. Statement of the Problem: How to solve quickly the serious quality problem on the company’s main product line Objectives: * To be able to seek solutions on how AQS can resolve the quality problem on their main product line * To be able to have a concrete solution on AQS supply chain and proactively avoid similar product-quality problems * To be able to pinpoint on how can AQS protect the company’s image of producing quality products Areas of Consideration: STRENGTHS | WEAKNESSES | OPPORTUNITIES | THREATS | AQS was ISO 9001 registered. | Having few staffs on handling product testing and addressing customer quality issues | AQS Manufactured about 20 products for over a dozen large companies | Having an extremely capital-intensive supplier | Had acquired a reputation in the industry for high quality and technological innovation | | | Having a supplier that’s not consistent with the quality of products they manufactured |
Alternative Courses of Action: ALTERNATIVE COURSES OF ACTION | ADVANTAGES | DISADVANTAGES | 1. In-source supply of additional components | Guaranteed to have high-quality supplies and can have a high quality control | It could be costly and it could take longer time to implement | 2. Stop all HRV deliveries until the problem was resolved | There will be no defective HRV delivered to customers, therefore, they will not experience the malfunction/ low quality of HRV | Several customers currently waiting for deliveries would be disappointed about any delays | 3. Changes to be consider for existing supply relationships. (Change of suppliers, high-control in purchasing supplies) | Improve supply management and quality of HRVs. | Takes time looking for another supplier. | Recommendation: As