1.

Summarize System Approach (at least 300 words)

SUMMARY OF VM#5 SYSTEM APPROACH

System approach originated in the 1960s and the concept is borrowed from the

physical sciences. System is a set of interrelated interdependent parts arranged in a

manner that produces a unified whole.

Furthermore, there are two kinds of systems; Open Systems and Closed System.

Open systems are systems that dynamically interact with their environment. They

cannot completely control their own behavior and are influenced in part by external

forces. Organizations, for example, are affected by such environmental conditions as

the availability of raw material, customer demands, and government regulations. All

organizations are open systems. While close system is a system that are not influences

by or do not interact with the environment. For example, the systems emerging in North

Korea.

Any organizational system is composed of three related parts: inputs,

transformations, and outputs, as shown in Figure 1 in the video. Inputs consist of raw

materials, human resources, information, capital, and technology coming into the

system. Inputs are acquired from the system’s external environment. For example, a

manufacturer in organization acquires raw materials from an outside supplier. In each

case, the system (organization) obtains resources (raw materials or information) from its

external environment. Transformations are the processes of converting inputs into

outputs. In organizations, a production or operations function composed of both social

and technological components generally carries out transformations. The social

component consists of people and their work relationships, whereas the technological

component involves tools, techniques, and methods of production or service delivery.

Organizations have developed elaborate mechanisms for transforming incoming

resources into goods and services. Transformation processes also can take place at the

group and individual levels. For example, research and development departments can

transform the latest scientific advances into new product ideas. Outputs are the results

of what is transformed by the system and sent to the environment. Thus, inputs that

have been transformed represent outputs ready to leave the system.

In essence, manager’s job in an organizationl “system” would be to coordinate

and integrate the work activities of the various parts of the organization e.g. different

departments. Manager needs to recognize and understand the impact of various

external factors such as suppliers, labour unions, financial instiutions, government

agencies and customers.

Therefore, some of the implications of the Systems Approach are the following;

coordination of the organization’s parts is essential for proper functioning of the entire

organization.Decisions and actions taen in one are of the organization will have an

effect in other areas of the organization.Organizations are not sel-contained and,

therefore, must adapt to changes in their external environment.

WORD COUNT: 433

REFERENCE:

https://www.youtube.com/watch?v=MVk1_Oj_Nac
CASE STUDY OF AMES CORPORATION

Ames Rubber, headquartered in Hamburg, New Jersey, produces rubber rollers

for office machines and specialized parts for the assembly of front-wheel-drive vehicles.

The company was founded in 1949, has annual sales of $45 million to $50 million, and

employs 445 people at three New Jersey sites. At first glance, Ames Rubber appears to

be a typical small- to medium-sized manufacturing firm. However, the company has

some truly extraordinary aspects that make it deserving of a second look, particularly in

the area of quality.

CASE PROBLEM

Unlike other companies that have used quality as part of a turnaround strategy

and system, Ames Rubber has been successful throughout its corporate life. During its

early history, the company flourished by providing component parts to the high-growth

copier and printer industries. In the early 1980s, the global environment changed, and

even though the company had achieved benchmark status in the copier industry, its

customers were demanding products that met more stringent quality requirements at a

lower cost. This challenge was exacerbated by the emergence of increased competition

from foreign competitors. It was clear to the managers at Ames that “business as usual”

was no longer sufficient to satisfy their customers’ needs.

The company conducted an internal review of its operations. At this point, the

company was unsure of how to improve its product quality in a cost effective manner.

The review indicated that Ames was expending considerable effort to meet the quality,

cost, and delivery requirements of its customers with no coherent quality plan in place to
guide its efforts or anticipate customer requirements. As a result of this analysis, Ames

decided to focus on the effectiveness of its manufacturing operations and quality efforts.

Remembering that Xerox had launched a program called Leadership through Quality,

Ames’ CEO Joe Marvel put his entire management team through Xerox’s supplier

training program. Using Xerox as its benchmark, Ames announced that it was

embarking on a new quality program entitled Excellence through Quality. The program

was designed to achieve one common goal—the satisfaction of both internal and

external customers.

Systematic changes also were made to facilitate the Excellence through Quality

program. All Ames’s employees are called “teammates” to promote an egalitarian

philosophy. Safety committees, made up of rankand- file employees, were set up to

ensure safety throughout the company’s facilities. To demonstrate his personal

commitment to satisfying internal and external customers, CEO Marvel redesigned the

company’s organization chart with external customers on the top, the firm’s employees

in the middle, and himself at the bottom. They also made changes in the system

approach of the company.

With their vision: To grow by continuing to be a leading provider of critical

elastomeric components in current market segments, as well as growing into new and

emerging markets and Mission: With our talented and engaged workforce, we develop

innovative elastomeric chemistries by utilizing various processes and equipment to

meet rigorous and demanding customer needs. We are a high-performance

organization focused on continuing to develop and hone our skills in an ever-evolving

environment.
 Ames commits itself to the continual improvement of its quality management

system to meet ever evolving market needs.

SYSTEM APPROACH TO MANAGEMENT AT AMES RUBBER CORPORATION

 Figure 1 Manufacturing System

Ames upgraded equipment and utilized innovative designs and more efficient

manufacturing techniques. It agreed upon goals with a workforce that was more actively

involved through training and a "teamwork" philosophy. The company then began

searching for an even better way to survive while striving for growth and prosperity. It

was expending considerable effort to meet the quality, cost, and delivery requirements

of customers. But Ames Rubber knew that its approach was fragmented and that it

lacked a coherent strategy, disciplined methods, adequate systems, a full

understanding of customer requirements, and a uniform approach to problemsolving

and longterm quality improvement. And managers saw clearly that they needed to

unleash the full potential of their Teammates.

Figure 2 Total Integrated Baldrige Exellence System

Ames Corporation has adapted the Total Integrated Baldrige Exellence System

which is composed of Leadership System, Strategic Planning System, Workforce

Engagement System, Operations Focus, Customer Management System and

Knowledge Management System. This system approach to management enables their

corporation to reach their goals, improve results and become more competitive by

aligning plans, processes, decisions, people, actions, and results. Ames has found that
the benefits of its system approach program have transcended its original objectives. At

a minimum, the company has become more disciplined, knows its customers and

employees better, and produces a better product than it has at any time in its history.

RESULTS

In addition, with the company’s system approach, an emphasis on quality has produced

the following benefits:

• Cultural change is happening, and it is being measured.

• Employee involvement groups are flourishing.

• Morale is at an all-time high because of involvement, improved communication, and

improved recognition.

• A system for total quality and beyond is in place.

• The company has reorganized and decentralized.

• Prioritization of effort has become routine.

• Rejected products have been reduced by more than 50%.

• Financial results have impr oved.

The legacy of Ames Corporation and its experience with quality is twofold. First,

regardless of how successful a company is, environmental change may result in

pressures to improve quality. This includes a strong emphasis on employees as a

conduit for change. As a result, maintaining a quality and improved operations of the
company. Ames had developed various coating materials and processes throughout the

years of serving the copier and printer markets with various rubber roller products. They

found that these coatings had characteristics that might be useful in other applications.

Ames determined that we could offer some of these coating materials and processes to

the Aerospace/Aircraft markets as a Protective Coating for external components to

resist erosion, Foreign Object Damage (FOD) and the formation of ice on these

components.

Ames continues to grow and expand into fast growing markets like alternative

energy, electrical, safety, and Aerospace/ defense. Ames has the know-how and

expertise with elastomeric materials and process technologies to meet exacting

requirements and provide critical components to high-end and demanding partners

everywhere.

WORD COUNT: 1,014

REFERENCE:

About - Ames Corporation - Elastomeric Technologies and Engineering. (2020,

September 1). Ames Corporation. https://amescorp.com/about/

Baldrige.Total Integrated Baldrige Excellence System. Retrieved October 20, 2020,

from http://www.baldrige21.com/Baldrige Best Practices.html.

Chegg.com. (n.d.-c). Chegg.Com. Retrieved October 20, 2020, from

https://www.chegg.com/homework-help/ames-rubber-corporation-realizing-multiple-

benefits-improved-chapter-4.c1-problem-2dq-solution-9780133800388-exc