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Quality at Axon
Length:
8:15
Subject:
“Quality at Axon”
Textbook Reference:
Chapter 3: Quality and Performance, page 134
Summary
This case highlights the quality improvement efforts at Axon through a Six Sigma program. In the
textbook case, the emphasis centers on employee involvement in monitoring quality of processes
and products and implementation of a continuous improvement program. The case describes how
employee empowerment and involvement as part of a Total Quality Management program can
yield significant quality improvements.
In the video case, it is seen that Axon uses work cells arranged by product. Students will hear
from Bill Denzer, the Vice President of Manufacturing as to how production supervisors, engineers
and production employees were able to communicate and work as a team to implement quality
improvements as part of a Six Sigma project initiative. The results of these efforts included a 30%
reduction in floorspace and a decrease in scrap from 2.5% to below 1%, resulting in a savings of
$400,000 in financial terms. The video wraps up with an emphasis of how culture and people
empowerment is key to the success of Axon’s quality improvement efforts.
Essay or Discussion Questions Based on Video
1. Implementing Six Sigma programs takes considerable time and commitment from an
organization. Evaluate Axon’s efforts with regard to management commitment,
measurement systems to track progress, tough goal setting, education, communication and
customer priorities.
• Top-Down Commitment: The Six Sigma initiative is supported from the top of the
organization down. Implementation of such a program is not inexpensive, with over
25 managers and employees from areas as diverse as Engineering, Manufacturing,
R&D, Quality Assurance, customer service and marketing undergoing a six-sigma
Green Belt training program. Also six Black Belts emerged as a result of this program
with projects targeted to strengthen operations at the company. In addition, changes
were made to the process, which involved installation of computer monitors above each
• Education: Over 25 managers and employees from areas as diverse as Engineering,
Manufacturing, R&D, Quality Assurance, customer service and marketing undergoing
a six-sigma Green Belt training program. Also, six Black Belts emerged as a result of
this program.
• Communication: As part of the Six Sigma quality improvement project, the
communication between manufacturing supervisors and managers, manufacturing
engineers and the direct labor – i.e. the manufacturing employees working on the line
was looked at. Instead of the engineers and managers telling the line employees what
2. How might Axon’s commitment to employee engagement help the company avoid the four
costs of poor performance and quality (prevention, appraisal, internal failure, external
failure)?
• The four costs of poor performance and quality are prevention costs, appraisal costs,
internal failure costs, and external failure costs. Clearly, the Six Sigma program at
Axon is prevention cost, so this cost is not avoided. Axon was already engaged in
appraisal of the quality of their raw materials and purchased parts. This appraisal
process did not change, and hence, there was no incremental change in appraisal costs.
Also, very often, the results of a continuous improvement process is a reduction of
3. Describe Axon’s total quality management approach as it relates to customer satisfaction,
employee involvement, and continuous improvement.
• A big emphasis of Axon’s total quality management approach is on employee
involvement and empowerment. Suggestions are solicited from the line employees, as
to how the process could be improved and what resources the employees would need
for those improvement efforts. In addition, a continuous improvement program was
