Continuous Improvement Plan for Latino Engineering Company Case Study

This case study analyzes the performance decline of Latino Engineering Company following a change in ownership. The assignment identifies key problems, including deteriorating quality, poor customer relations, and operational inefficiencies. The analysis uses tools like Pareto diagrams and cause-and-effect diagrams to pinpoint root causes, attributing issues to the new management's practices. The study advocates for a Total Quality Management (TQM) approach, emphasizing customer focus, employee involvement, process-centered operations, and integrated systems. The proposed solutions include training, process improvements, and fostering a better work environment to restore the company's performance, improve customer satisfaction, and regain market share. The assignment highlights the importance of continuous improvement strategies in business development and management.

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Case Study Continuous Improvement Plan
Author’s Name
Institutional Affiliation
Tutor
Course
City and State

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Case Study: Continuous Improvement
Latino Engineering Company
Introduction
Latino Engineering company is facing a plethora of problems most of which can be
attributed to change of proprietorship. Changing the organization ahead ushered in a radical
change in the modus operandi since the decision-making system was no longer on one
individual’s shoulders. Apparently, when Dominic Latino was in charge be used to be the
sole decision maker in the company thus all actions were prompt and swift. He also enjoyed
a better working relationship with his workers no wonders the exceptional efficiency that was
being recorded by the company at the time. Naturally, he was passionate about his enterprise
since he loved designing and developing engineering equipment. Therefore, he did not need
extrinsic motivation to perform his duties better. For him, job excellence was the first
priority. However, since the change of ownership, the company has experienced a turn for
the worst in fortunes with clients raising numerous complaints about the services they
receive. This calls for an argent address of the problems failure to which the company will
lose its invaluable market share (Limwichitr, Broady-Preston and Ellis, 2015. P.480) This
paper will examine the root cause of the problem using the appropriate tools and recommend
the way forward to achieving continuous quality improvement. Its aim is to provide the way
forward for the company.
I will apply the total quality management approach since it is more suited to the context
of the company than any other methodology. This is because it caters to customer needs, the
involvement of all organizational employees, it is process centered, strategic approach to

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organizational efficiency among many others. In totality, the total quality management
approach is focused on ensuring customer satisfaction (Paliska, Pavletic and Sokovic, 2017,
P 80).
Strategies to Detecting the Problem
Use of tools and Techniques
To being with, to detect the source of the problem in the organization needs to apply the
fittest tools if the problem is to be correctly identified. For the case on point, the 7QCs tools
are the most appropriate. The entail, the Pareto diagram, check sheet, the Scanner plot, the
control chart, cause, and effect as well as the histogram. Choosing the correct tools is
essential in identifying the problem and will lead to choosing the beats way to arrest it. I
chose cause and effect and the Pareto diagram as the best tools to detect Latino Company’s
problems (Doggett, 2015. P.34)
Pareto diagram
Despite the fact the remaining six tools are equally effective, the Pareto diagram seems to
me to be the most applicable tool. Its application entails arranging elements in a decreasing
order in order to find out how each leads to the problem. This approach is normally used o
detect a problem and subsequently coming up with a way forward to solving it. In the context
of the Latino Engineering Company, the Pareto tool can be applied as follows.
Change of proprietorship. This can be seen from the case that Dominic Latino-its owner-who
founded it decided to sell it. Until this time the company was doing exceptionally well since
he was the sole decision maker and he always aimed at achieving the best performance all the
time (Limwichitr, Broady-Preston and Ellis, 2015. P.480)

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Deteriorating quality. After the takeover, the quality of the designs started deteriorating. The
equipment became defective. Apparently, those in charge of the designs were no longer
living up to the standards that Mr. Latino had set. This was huge blow to the enterprise as
well as the customers since they started complaining (Paliska, Pavletic and Sokovic, 2017, P
80).
Poor links with customers. Initially, the clientele used to enjoy a healthy working relationship
with the company’s administration. This was no longer the case after the new investment
company took over. The high-quality services that they were accustomed to were a thing of
the past with longer lead times as well a sluggish response system, a nonresponsive customer
care department and also, sometimes packing of wrong equipment and designs (Tannock,
Krasachol and Ruangpermpool, 2012 P. 385).
Fundamentally, change of proprietorship is a normal aspect in the corporate world and it
can be done for various reasons. For the Latino Engineering Company the decision to sell by
done individually by the owner which was within his discretion. This change of guard cannot
be deemed to be a wrong action for any business enterprise. However, the problem majorly is
on the side of the new management because, since the takeover, they have not recorded
anything positive apart from dwindling outcomes in terms of the company’s economic
fortunes. Therefore, it can be concluded that the new administration-Investment Group- is
the root cause of all problems that are bedeviling the enterprise at the moment (Tannock,
Krasachol and Ruangpermpool, 2012 P. 385).
When he was in charge, he met the customer demands by guaranteeing excellent
services thus enabling the company to enjoy increased patronage and an ever-expanding
customer base. However, this situation turned for the worst after the new investors took over

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and the clientele was no longer content with what they received as services. Despite the fact
that the new owners decided to retain the workforce for the sake of continuity, the
management was no longer achieving the same level of efficiency that Latino used to. Also,
there could a possibility that the new employees are to up to task since they do not possess
the right competencies to deliver high-quality services. This could be particularly by poor
practices by the human resource department which recruits an underqualified employee and
thus the substandard products and services (Doggett, 2015. P.34).
It is difficult to understand how the same workforce that propelled the company to
unprecedented heights of economic excellence can underperform unless they are least
motivated to perform their duties. Also, there could be an element of sabotage from the staff
since under no circumstances that wrong equipment can be packaged for wrong destinations
unless the same was done deliberately or whoever is in charge of that department does not
understand their duties fully. This is a big letdown by the sales departments. Essentially,
there needs to be a radical examination into the competencies of each employee to so that the
underqualified ones can be weeded out. This will also enable the company to replace the
rogue elements with better staff members that can help restore the company’s lost glory
(Limwichitr, Broady-Preston and Ellis, 2015. P.480)
There is a big mess at the customer relations department. Been nonresponsive is akin to
disrespecting the clientele who are the most important part of the organization’s prosperity
measures. This is likely to push them into the company’s main rivals which will be a huge
blow to any chance of it mounting serious competition in the market as well as retaining its
huge market share that it used to enjoy (Tannock, Krasachol and Ruangpermpool, 2012 P.
385). From the organization, critical stakeholder’s perspective, catering for their needs is

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paramount if it harbors feelings about being prosperous both in the present and the future.
However, with the current state of affairs, there is need to be concern that the company is
headed towards the wrong direction (Magar, and Shinde, 2014.P. 371).
Cause-effect diagram
This is an element that is used to link feasible causes and their symptoms. This is helpful
since it enables examiners to relate to the observable features of a problem and their causes.
Relative to Latino Engineering Company, the problem is the takeover by the Investment
Group and the results are the dwindling fortunes that are being experienced at the moment.
Regarding this problem, this tool is more concerned with what led to the problem. Firstly, the
problem is brought about by a process within the organization. This process has results and
effects to the company’s overall performance. For this case, this the defective equipment and
inadequate administration are the major causes for the problem.
Also, the defective equipment interfered with the quality of the services delivered. This
made the process to be worn. The employees are also to blame for failing to detect the
defective equipment and going ahead to apply the wrong equipment for various
organizational processes. With this in mind, it will be easy to say that the administration has
been part of the problem by failing to ring changes to departments that have recorded
minimal results. Some mistakes like a poor response to customers can only be blamed on an
administration that does not mind about its overall efficiency. Also, the company ought to
have set standards that all performance should be measured against. This should have
provided the perfect benchmark and reflection on all activities so that they are I line with
overall organizational efficiency. By so doing it would have been easy to detect the problems
early.

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Plan on how to eliminate the Root Causes
As mentioned above, the total quality management is the perfect masterpiece to eliminate
all the problems bedeviling the organization. Apparently, customers are at the heart of any
quality improvement strategy since they are the ones that patronize the company. The
following is a layout of how the approach will be used to help Latino Engineering Company
to overcome performance problems (Limwichitr, Broady-Preston and Ellis, 2015. P.480)
Focus on customers.
Naturally, it is the desire of any organization to satisfy its customers fully. The company
is no exception and it has to work round the clock to ensure that it restores customers’
confidence. This will entail training the workforce on the essentials of the operations,
integrating quality into the design processes, something that has been lacking recently,
upgrading the computer systems, acquiring new design and measuring tools as well as
ensuring that all activities are in tandem with the overall organization's ambitions. Such an
upgrade will require cooperation from all departments as well as worker participation.
Everything that is to be implemented should aim at making the clientele believe that what
they are receiving is the best there is in the market, to prevent them from moving to the
company’s competitors (Magar, and Shinde, 2014.P. 371).
Involving all employees
All operations within the company are meant to achieve the premeditated objectives and
ambitions. This calls for all employees to pull towards one direction. For them to do so, the
company will have to roll out employee empowerment programs that are meant to make hem
feel comfortable at their job responsibilities thus enhancing their job satisfaction. Also,

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Latino Engineering Company will have to foster a better working environment where
employees feel free to express themselves. Apparently, this could be the same reason as to
why they are not airing their reservations hence reverting to sabotaging the company’s
critical functions. The enterprise should at all times strive to make them feel appreciated
through better remuneration and better working relationships with their peers as well as
seniors. The firm should develop self-managed teams as a way of motivating employees to
be self-reliant ad sufficient (Magar, and Shinde, 2014.P. 371).
Enhancing Process Centered Operations.
This entails a lot of process thinking. Apparently, as identified above, the major
organizational processes have failed to hit the minimum threshold that is required for
excellent performance thus calling for the prevailing condition to be through revised. Starting
now, all responsibilities will be defined and all achievements and performance measures
against a benchmark. There will be a detection system that will be used to monitor all
organizational activities such that in case one strays out of line the necessary corrective
measures are put into place. This should serve to check undesired variation from the main
course thus helping the company to overcome possibilities of plunging into dungeons of
underperformance just like it is the case at the moment.
Integrated System
In this context, the TQM will emphasize on the horizontal functions that interconnect all
organizational operations as being central to quality improvement. This practice will make
sure that not even a small function is left unattended to since it might fester and eventually

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push the company out of balance in the near future (Limwichitr, Broady-Preston and Ellis,
2015. P.480)
Systematic and Strategic Approach
This caters for the company’s mission and vision as well several ambitions. This entails
coming with an elaborate system and strategy to addresses any observable inconsistency
within the company. For the case on point, this will entail, redesigning the manufacturing
process, to incorporate customer demands, increasing the efficiency of the customer relations
departments as well as polishing the marketing department. All these functions seem to be
ineffective at the moment thus leading to the underperformance that is being experienced. A
strategic and systematic approach will ensure that the company correctly identifies its
dimensions that are wanting and apply the most appropriate mechanisms to arrest the
problem (Magar, and Shinde, 2014.P. 371).
Continual Quality Improvement plan
Once the weak areas have been identified, the role of the company should now switch to
make sure that the quality of its service on a continual basis. This will entail analyzing into
ways of recovering and maintain its competitive advantage. On the face of it, the company
needs to rediscover its former exploits by ensuring that it is always on top of its game. In this
way, its competitors will not have a significant impact on its operations.
Enhancing a Fact-Based Decision-Making System.
This is more or less the same as being pragmatic with the prevailing conditions. The
company will have to install a mechanism that collects data regarding its performance. This
will make the decision-making process to be accurate, able to reach consensus, thus easy

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prediction on the future outlook of all aspects. This is very important since it will enable the
company to know what to implement as preventive measures to any problem that it
anticipates.
Adopting an Efficient Communication Mechanism.
Communication is key for any ambitious organization. This is because it engenders a
better workplace culture and also effective in making decisions. All workers will be
motivated to do their duties if they are well informed on what is expected of them.
Seemingly, after the change of ownership, the flow of information within the company has
been unreliable. No wonder there are simple problems that ought to have been corrected once
detected but are still present.
All these principles of the total quality management approach will help Latino
Engineering Company to realize its once revered glory and also develop further. They are all
based on prioritizing customer demands as well as ensuring that the firm is abreast with the
latest trends that dictate production and organizational excellence.
Continuous Improvement (CI) Plan
The continuous improvement plan will entail fundamental activities the will ensure that
all departments are in line with the overall ambition. With due consideration of the total
quality management approach, the following are the steps that will be undertaken to keep the
company in line with market realities.

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Poti Diagram
(a) Quality management. This is more concerned with ensuring that all products and
services are designed with the best quality possible. To realize this, the company will
continuously revive the production process, install the latest designs and also have a
benchmark that will indicate whether it is on track or not, in this way will know where it is
going wrong and how to correct V
(b) The human resource management. Employees are an important part of any organization
inclusive of Latino engineering. This call for the company’s HR function to continuously
advice its workforce on the best practices, train them where necessary as well as provide
them with the necessary incentives to prosper in their work. Proper remuneration, job
appraisals, and promotions will be important since they will be encouraged to work harder
and smarter for them to merit promotion. This function holds the key to the company return
to winning ways since a motivated workforce will require little supervision. Just like they
Quality management Revising product design
Human Resource Management Revisiting employee competency
and recruitment
Efficient Communication Free communication
policy.

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were in the past, they will work tirelessly to better their company is they are motivated to
their duties.
(c) Cultivating a culture of efficient communication. The company will at all times has a
free communication policy in which all employees and senior staff will exchange information
when necessary. A breakdown in the communication chain has proved costly to the company
since the subordinates no longer feel free to air their grievances. The apparent top-down sort
of communication chain that is characteristic of the enterprise at the moment will only hurt it
in the near future (Limwichitr, Broady-Preston and Ellis, 2015. P.480)
Conclusion
The Latino Engineering company has in the past been a role model for upcoming
companies in the sense that its administration was elaborate and an example of how an
efficient administrative framework can project a company to unprecedented achievements.
Unfortunately, this is not the case at the moment since many of its dimensions changed the
moment Dominic Latino sold. However, with this continuous improvement plan in place, the
enterprise should be able to correct the mistakes and also gather more pace in future.

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Pictogram

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