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ENGI9397: Advance Model and Quality Management
Case study
LONGXI Machinery Works
Submitted by:
Md. Istiaque Jaman
MUN ID # 201399979, Winter 2015
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Table of Contents
Introduction
03
Quality of Machineries in the Market
03
Problem Statement
03
Analysis Section
04
Total Quality Management at Longxi
05
Longxi’s vs Changchai’s Approach to Quality
05
QC Group 96020
07
Further Actions to Improve Quality
08
Recommendations
08
Table of Figures
Flow diagram for production of the Duo-Gear Shaft
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Introduction
China is potentially a huge market for small diesels engine. Sales of diesel-
powered agricultural machinery and vehicles had grown by more than 10%
annually since 1985, and this growth rate was forecast to continue until at least
the year 2000. 85% equipments use single-cylinder diesel engines, while the rest
use multi-cylinder ones. In the market of multi-cylinder diesel the competition is
less intense because of excessive demand. The prospect is much more
promising. LONGXI Machinery works has a certain competitive advantage in this
market, resulting from its popular product such as SL2100.
Quality of Machineries in the Market
Prior to 1978, both manufacturers and customers had paid little attention to
quality of diesel. Later, they have been realizing the importance of quality. Under–
quality products may cause customers to lose production time due to engine
breakdown. They may also cause manufacturers to delay engine production and
incur high cots in repairing. So quality will have more and more significant
implications for future business of all manufacturers including Longxi.
Problem Statement
LongXi Machinery Works is forecasting an increase in demand for its multi
cylinder engines. This increase in demand offers the company the
opportunity to deliver more powerful engines to a larger, scalable and more
versatile product mix LongXi has identified that it is having quality control issues
in manufacturing the Dual Gear Shaft (DGS), an important component of the
multi cylinder engine,. In response the company is in the process of creating a
new Quality Management Department to not only look at the quality concerns of
this component, but also grow quality throughout LongXi Machinery Works.
Analysis Section
Currently LongXi has been using a modified Total Quality Management
technique based on the structure of ISO 9000 called “The Method”. LongXi also
has a quality reward system where employees are rewarded according to the
quality of the product manufactured in their respective departments “The Method”
and quality reward system includes guidelines and rules in approaching quality
improvements, but relies heavily on inconsistent self and mutual quality
inspections. This makes LongXi’s production much more labor intensive than
Changchous a major competitor, and relies on older equipment and human
judgment. LongXi outsources 80 percent of its engines components, but has
resisted any vertical integration of key components including the DGS. They also
have resisted the idea of a formal ISO 9000 certification as too costly and time
intensive.
Longxi’s main competitor is Changchai Diesel Works. Changchai is also realizing
the high demand in multi cylinder engines, and was ISO 9000 certified in 1993.
