I.

POINT OF VIEW IN ANALYZING THE CASE

We are analyzing the case from the point of view of the companys CEO that desires to pursue the
Baldrige criteria in replacement of its current philosophy which is Demings 14 points.

II. MAJOR PROBLEMS

Adapting the Baldrige focus and commencing a process of self-assessment against the criteria to identify
opportunities for improvement, are the major problems of TecSmart since the entirety of the company is
accustomed to Demings 14 points when it comes to management

III. OBJECTIVES IN ANALYZING THE CASE

To seamlessly adapt the Baldrige Focus
To identify opportunities that will lead to improvement

IV-A. FACTS OF THE CASE

A. TecSmart manufactures and designs electronic power supplies for OEM (Original Equipment
Manufacturers) in computer, medical and office products
B. TecSmart focuses on Quality, Service & Values.
C. Quality journey started in the mid-1980s and was based on Demings 14 points.
D. TecSmarts employees are sent to Deming seminars, to continually ace the 14 points.
E. The current CEO decides to pursue a Baldrige focus
F. Senior leaders set company objectives and guide cross-functional teams. They also participate in
quarterly communications with all the employees. They also teach in TecSmart University.
G. TecSmart sets six sigmas for most of its processes
H. All employees are trained in a five-step problem-solving process
I. All employees receive customer relationship training
J. Vice president of sales handles all the complaint
K. Cross functional teams guide product development
L. Average employee receives 72 hours of quality training

IV-B. ASSUMPTIONS

Competition - Is there a risk of any new entrant to the market or current competitor while the company is
at its full scale shift of philosophy?
Company Personnel - Is the company recruiting sufficient flexible staff? Are companys benefits enough to
cater the needs of its workforce? What will be the reaction of the employees when the top management
decided to pursue the Baldrige focus? Will it decrease their effectiveness? Will it hinder their skills since
they are not accustomed to Baldrige?
Suppliers Will there be a bad initial reaction from the suppliers when the said philosophy shift takes
place? Will the new philosophy overran normal supplying functions?

V. BEST ALTERNATIVE COURSES OR ACTIONS

WITH ADVANTAGES AND DISADVANTAGES
Alternative Course #1
Add extra hours of internal quality/service-related training of the employees with regards to the
adaptation of the Baldrige Philosophy
Pros:
1. Additional training would enhance employees understanding of the Baldrige Focus
2. Since a new philosophy would be applied, adding extra hours of training would reduce the
employees confusion concerning Baldrige
Cons:
1. Additional hours of training might be against the will of the employees
2. It would be more expensive
Alternative Course #2
Make the employees become accustomed to the Baldrige focus as well as the Deming's 14
points for the training of the employees and the improvement of the company
Pros:
1. It can help improve the company since both of them provides different sets of strengths.
2. Applying both can generate good result for the company if done appropriately
Cons:
1. Employees will more likely be confused with the addition of a new philosophy
2. It is time consuming and more costly

 Alternative Course #3
Retain their former philosophy which is the Deming's 14 points
Pros:
1. The Deming philosophy already proved that it would bring success to the company
2. The quality of the Deming's 14 points had already been tried and tested by the company as
well as the employees since the said philosophy carried the company into the 21st century
3. The flow of activities in the company will run smoothly since the management technique that
will be implemented is still the Demings 14 point, a philosophy where the companys
employees are very familiar.
Cons:
1. The company will not innovate
2. The employees will not grow as a flexible company personnel

VI. BEST ALTERNATIVE

The first proposed course is the best alternative which is:

Make the employees become accustomed to the Baldrige focus as well as the Deming's 14 points for the
training of the employees and the improvement of the company

We chose the second alternative because we find it suitable for the company. TecSmart Electronics is
known for its good quality products as well as its good and improving relationships internally. The current
CEO seeks improvement which made them pursue a new philosophy that could replace or compliment
Demings 14 points. The alternative clearly suggest that the company should now make the employees
accustomed to the Baldrige focus, but they cannot immediately replace the current philosophy that they
are using now. The sudden change would likely confuse the employees, which may result to process
disruptions or even hinder their effectiveness. For that reason, we recommend that they help the whole
company adapt both of the philosophies, since both philosophies provide different strengths that can
help improve the company. And besides, if all employees adapt both philosophies, then the number of
theories they can utilize in different processes would increase, thus making them more innovative and
flexible. The proposed alternative might take a year to be implemented, but then the company can
expect a great improvement in their operations, if and only if, the said adaptation was done properly.

VII. PROPOSED ACTION PLAN

Activity

Time Frame
Start
Completion

Responsibility
Direct
Support

Study both of the philosophies

and determine its strengths as
well as the differences.

Month 1

Month 2

Company
Researchers

Top
management

Find a training agency or

someone to conduct seminars to
the employees regarding the
two philosophies.

Month 2

Month 4

Top
management

Training
Agencies

Company
Financial
consultants

Work out the costs for the

training and find a way to
minimize them.

Month 4

Month 5

Top
management

Notify the employees about the

changes that will be made.

Month 6

Month 7

Top
Management

Employees

Contact the training agency or

the persons to conduct seminars
to the employees

Month 7

Month 8

Top
management

Trainers

Send the employees to the

seminars or both philosophies

Month 8

Month 12

Top
Management

Employees

Month 12

Month 13-14

Top
Management

Employees

Ensure if the employees

improved by surveying them
regularly

VIII. ANSWERS TO DISCUSSION QUESTIONS

1. Discuss how the practices that TecSmart identified supports Demings 14 Points.
1. Create and publish to all employees a statement of the aims and purposes of the
company or other organizations. The management must demonstrate constantly their
commitment to this statement
It is evident that TecSmart has a focus on Quality, Service & Value. This is also
reinforced by making plans and disseminating it down the organization, wherein
leadership team can focus on three key values. By holding quarterly communications
meeting, senior leaders can reinforce their statement of purpose.
2. Learn the new philosophy, top management and everybody
It is evident that TecSmart has a focus on Quality, Service & Value. This is also
reinforced by making plans and disseminating it down the organization, wherein
leadership team can focus on three key values. By holding quarterly communications
meeting, senior leaders can reinforce their statement of purpose.
3. Understand he purpose of Inspection, for improvement of processes and reduction of
cost.
Inspection is not explicitly addressed, but based on di, which can involve inspection,
are routinely made.
4. End the practice of awarding a business on the basis of price tag alone.
The basis on which decisions are made for purchasing parts and services is not
discussed. However, item #18 states that suppliers are involved in early stages of a
product development program. That implies that there is a close working relationship
between the company and suppliers, and that cost concerns are discussed and
worked out to minimize quality issues.
5. Improve Constantly and forever the system of production and service.
A process is in place to train employees in a 5-step problem solving process, and new
processes are documented and variation in ongoing processes is monitored for
corrective action.
6. Institute Training.
As stated earlier, training and learning seem to be built into the company, such that
executives teaching courses at TecSmart University. Customer relationship training is
also required for all employees. Also, provision is made for 72 hours of training on

service/quality topics, and sales, engineers, office staff, and managers must all be
trained.
7. Teach and Institute Leadership.
Leadership is evident in objective-setting, communication and teaching, planning
complaint resolution, and middle management coaching.
8. Drive Out Fear. Create trust. Create a climate for innovation.
While driving out fear is not specifically addressed, it seems likely that the quarterly
communication sessions with top management, employee empowerment through
self-managed teams, and the annual employee surveys would do a great deal to
reduce or eliminate fear.
9. Optimize toward the aims and purposes of the company the efforts of teams, groups,
and staff areas
Teams and staff have been organized as indicated by the following statements
- Senior leaders set company objectives and guide cross-functional
teams.
- They also participate in quarterly communications with all the
employees. They also teach in TecSmart University.
- TecSmart sets six sigmas for most of its processes
- All employees are trained in a five-step problem-solving process
10. Eliminate Exhortations for the workforce.
Goals are set and measurement processes are used extensively, but exhortations are
never mentioned.
11. Eliminate numerical qoutas for production, instead learn and institute methods for
improvement
Again, no mention is made of quotas or MBO. Understanding of the need for
improvement, and to know the characteristics of processes abounds.
12. Remove Barriers that rob people of pride of workmanship.
Hourly workers can make process changes with the agreement of only one person,
and sales people are authorized to travel wherever they feel it necessary for
customer service.
13. Encourage Education and self-improvement for everyone.
Learning, training, and education seem to all be inter-related at TecSmart. Nothing
was explicitly stated about education, however.

14. Take Action and accomplish the transformation.

The company has taken action to institute quality on a number of fronts, already. The
greatest transformation for this company would be the innovation from one to
philosophy to another.

2. How did these practices support the Baldrige criteria? Specifically, identify which of the
questions in the criteria each of these practices address.
1. Leadership
Senior leaders guide cross functional teams
Senior leaders participate in quarterly communication meetings with
employees.
2. Strategic planning
Senior management set company objectives
Each department operates to serve company's objective
3. Customer and Market focus

All employees received CRM Training.

Customer satisfaction data is acquired from sales representatives.
All complaints were handled by Vice president of sales
Meetings were held with customers to identify requirements of their
products

4. Information and analysis

Senior management set company objectives
Each department operates to serve company's objective
5. Human resource focus
All employees were involved to discuss problems & issues
All employees were trained for handling problems
6. Process management
Company collects operational data in every dept to evaluate information
requirements
Company has set Six sigma goals for its processes
All employees trained in 5 step problem-solving process

3. What are some of the obvious opportunities for improvement relative to Baldrige
criteria? What actions would you recommend that TecSmart do to improve its pursuit of
performance excellence using the Baldrige criteria?
TecSmart Electronics has so many obvious strengths. However, strategic planning
(Category 2) appears to be an area where some improvement could take place. No
mention is made of how goals are set, benchmarks are chosen, or cycles of improvement
in the planning process take place. In pursuing performance excellence through Baldrige
criteria, all of the categories must be practiced thoroughly by TecSmart Electronics
employees and the top management, since the said philosophy is new to them. The
company should also perform a quarterly survey on how Baldrige Focus affects their
performance to asses