Arenas, Ronalyn

BSHM-3A
Operation Management – TQM
Case Study: Solar Cell Manufacturer
(TASK PERFORMANCE)
Solar Cell is a manufacturing company based in southern part of Korea that manufactures different types
of solar-powered products. They have customers based in the local parts of the country and abroad. The
company is growing fast due to the increased demand for non-conventional energy. The CEO of the
company associates their success in the use of control charts for their manufacturing procedures which
lets them control the quality of their final outputs.
Although the company has been quite successful in the use of control charts for their manufacturing
operations, it has extended the applications of control charts in their non-manufacturing sectors such as
HR and Finance. The reason for this implementation is because of the major increase in employee attrition
and significantly large budget allotted to several departments of the company. Based on the result of the
exit interviews, most of the employees who left the company claimed that they experienced work-life
imbalance particularly for the operators since they were required to work in extended hours in
circumstances when their substitute partners would not be able to arrive to work on time or would not
be able to report to work at all. The minority of the resigned employees thought that they were misaligned
and not trained for their job, they felt undervalued and afraid that growth opportunities were not present
in the company. Another problem area that the top management has observed involves the finance team
of the company. The management have found out that allotted budgets in some departments or work
units of the firm are unrealistic, inaccurate, and unreasonable.
After reviewing all the problem areas of the organization, the company’s quality assurance team
suggested the use of control charts in the two (2) departments where the problems are prevalent.
However, another difficult situation arises due to the resistance of the employees toward the use of
control charts which gains several complaints from the employees pertaining to exhausting additional
workload since they would have to monitor and notate the different outflows and inflows in their major
and minor day-to-day operations. There was a clear lack of understanding of the benefits of control charts
and the need for change using control charts as a catalyst for change. The senior management team
decided to provide a one-day awareness program for the HR and Finance people so that they can
understand the expectations and the need for the control chart initiative within the company. Moreover,
an executive awareness was also introduced to all senior management team so that they would
understand the importance and benefits of control charts in the business.
Follow the suggested outline below in answering the case study:
I. Background
Solar Cell is a South Korean manufacturing company that specializes in the
production of solar-powered items. As the demand for non-conventional energy
develops, the company is rapidly expanding. The CEO of the company attributes its
success to the usage of control charts for production methods, which allows them to
retain quality control over their final outputs. Due to the increase in employee numbers,
the control chart is also implemented in their human resources and finance departments.
Furthermore, the bulk of staff quit the organization because they felt devalued and
untrained. The management planned to hold a one-day awareness session for the human
resources and finance departments to ensure that they were aware of the control charts
strategy’s expectations and requirements.
II. Statement of the Problem
a. How can Solar Cell Manufacturer control or eliminate attrition and overspending in
their organization through the use of control charts?
For me they may easily create a solution that will help to enhance work efficiency
in the organization by applying control charts. The departments where the problem
occurred can be easily identified with the help of the control chart.

b. What steps should the top management employ in order to overcome the resistance of
the employees in the change initiative?
I think the top management can take specific efforts to positively address these
unfavorable employee attitudes. Among the approaches are highlighting new
performance criteria for staff specialists and pushing them to think differently, as well as
using resistance as a realistic warning signal for directing and timing technical
improvements. Additionally, attending meetings of staff and operating groups where
change is discussed can help senior executives improve the effectiveness of their own
efforts. They can do so by focusing on the consequences of these dialogues for
establishing resistance and receptivity to change rather than the facts of timetables,
technical specifics, and work assignments.

c. What steps in implementing Statistical Process Control (SPC) should Solar Cell
manufacturer apply in order to succeed in the initiative?
The steps in implementing Statistical Process Control (SPC) should Solar Cell
Manufacturer apply in order to succeed in the initiative is the step 5 which is to develop
control charts and step 13 which is determine process capability. First and foremost, to
facilitate the monitoring inside and outside the area. Plus, it is not what steps the
employees take but they have patterns to follow. It will also help to avoid errors in output
variations.

III. Areas of Consideration

The facts are the Solar Cell Manufacturing Company has experienced employee
attrition because the majority of those who resigned stated that they struggled with
work-life balance, particularly operators who were required to work long hours in
situations where their alternate partners were unable to disclose to work on time or at
all. A small percentage of resigned employees said they were misaligned and
undertrained for their jobs, that they were devalued, and that there were no possibilities
for advancement within the organization. The company’s finance department is another
example that upper management has noticed. Budgets allotted to certain divisions or
work units within the organization have been deemed by management to be unrealistic,
inaccurate, and unreasonable. Employee attrition at the Solar Cell Manufacturing
Company is a result of the majority of staff leaving.

IV. Alternative Courses of Action

The first course of action that I think is ideal is to provide adequate training to all
employees within the area. Through this, all employees in the company can have
sufficient efficiency and knowledge. This will serve as their weapon in their work in Solar
cell Manufacturing so that they will not be lazy to work on it.
 Advantages
The advantages of this are first Investing in your personnel and enhancing their
abilities through training can help you to boost productivity and see managing your
employees’ performance. Raise the standard of work with streamlined processes and
more competent staff, you can reduce faults, waste, and customer complaints.
Developing your workforce and improving their skills through training can increase
productivity and see managing your employees’ performance. Raise the standard of work
with improved operations and more qualified workers, you can reduce defects, waste,
and customer complaints.

Disadvantages
Your employee’s training time is time spent away from their job. It’s probable that
you won’t be able to accommodate a huge number of non-work hours for your employee.
Employee training costs can be prohibitively expensive for small and medium sized
businesses. Travel, training facilities, in-house training development, and equipment may
add up rapidly. The second step is involving employees in the change implementation
process. Employees will feel appreciated and driven as a result of their viewpoints being
taken into account during meetings where recommendations for making such new
changes are discussed. The staff will next work with the implementation team to
collectively launch the change.

Advantages
Employee participation has gained in popularity since it has been proven to boost
employee commitment to their employers. Company leaders confirm the worth of their
staff by involving them actively in decision-making. Employees are more likely to acquire
stronger commitments to organizational and departmental goals if they help set them
and are involved in achieving them by providing feedback and making key decisions.

Disadvantages
One possible drawback of boosting employee involvement is the risk of blurring
the barrier between management and employees. While managers may value employee
involvement, businesses have always relied on a disciplined structure with defined
reporting lines to maintain stability.

V. Recommendation
It is adequate training to all employees because as I said it is a big help to the problem
faced by Solar Cell Manufacturing. All employees will be provided with adequate education
or knowledge in all activities inside and outside the area. They will learn how to do correctly
all the steps they are supposed to take so as not to make a mistake. In addition, not all
employees will be affected and they will not think of leaving their jobs because they know
what they have to do.

VI. Management Lessons Learned

When planning, management should be cautious. There are several factors to
consider when hiring employees, including determining how many people to hire and how
many not to hire in order to minimize overemployment. And, if an employee feels
undervalued because their skills are misaligned, and they believe there has been no
improvement for their skills because the company does not show support for the employee
improvement, management should learn to focus on the skills improvement of their
employees, and they must also involve the employee in every change that the management
must implement.