1. T by Mark Hibbard | Recharger Magazine
Technical
The Business of Producing Quality:
Whose Business is it?
40 | March 2004 | www.rechargermagazine.com
R
emanufacturing imaging consum-
ables is becoming an increasingly
more serious and sophisticated
process. In an effort to understand where
the responsibility for product quality is
placed within an organization, this article
will look at a few quality organizational
models that are being used by some North
American remanufacturers. Even though
there are many aspects of a total quality
management approach within a remanu-
facturer’s facility, our goal is to under-
stand product testing and the use of the
data that is developed from a comprehen-
sive quality program.
Remanufacturing is a specialized
industry that requires a unique planning
strategy involving a continuous process of
making timely decisions with the best pos-
sible knowledge of their effects. Product
quality management within the remanu-
facturing industry means organizing the
remanufacturing effort to carry out these
decisions, fulfilling customer expectations
through organized data collection and
informational feedback to many key indi-
viduals within the industry.
Organization Structure and
Development Observations
There are five basic organizational struc-
tures that I have seen employed within the
realm of laser and inkjet remanufacturing.
• Simple.
• Improvised.
• Professional.
• Mechanized.
• Divisional.
The basic arrangements of these five organizational
structures need to be characterized with respect to product
testing and quality management.
Simple Structure
The simple organizational structure is usually found when
a new business is in the beginning phases, or when the boss
Remanufacturing is a specialized industry
that requires a unique planning strategy
involving a continuous process of making
timely decisions with the best possible
knowledge of their effects.
Hibbard 2/9/04 1:30 PM Page 40

2. 41 | March 2004 | www.rechargermagazine.com
or owner doesn’t delegate once growth begins. The boss is
the central focus within the organization. All other indi-
viduals have specific duties that they perform to fulfill
order requirements and enable the business to run. There
is usually a shallow middle management that is responsible
for personnel issues and attendance. The short- and long-
term goals are under the direct supervision of the
owner/boss. The owner/boss usually has the primary skill
set that drives the business. In remanufacturing, this skill
set tends to be weighted heavily to the sales and marketing
functions in which the boss specializes. There may be
information systems that tend to be underused and they
are often not integrated within the functional structure of
the company.
The employees in the functional area who perform any
testing and qualification of raw materials within the organ-
ization usually report their data directly to the boss. The
procurement-gatekeeper functions and manufacturing-
floor decisions are usually the boss’s responsibilities. Doc-
umentation and product improvement are not planned or
understood by many of the personnel.
Improvised Structure
The improvised structure is well suited to the fast-changing
pace of a growing remanufacturer. When major growth is
realized by a remanufacturer, a complex and unstable envi-
ronment may have the boss setting out many plans but few
organizational policies. The boss usually is the central
focus within the organization in an improvised structure.
There are team members who have specific functions that
they perform to fulfill order requirements and enable the
business to run. Any authority structures are loose and
ambiguous. The short- and long-term goals are under the
direct supervision of the owner/boss.
As in the simple structure, the owner/boss usually has
the primary skill set that drives the business — sales and
marketing functions that drive the entire business during
this phase of growth. There are information systems that
execute basic administrative functionality but are not
tuned for advanced manufacturing-related tasks.
The personnel who test and qualify raw materials within
the organization will develop reports about new product
development that are reviewed by a few key people. The
actual performance data of the remanufactured products
will usually be less robust and delivered to the same key
personnel for their review. The financial, sales, and pro-
curement gatekeeper functions and the manufacturing
floor decisions are usually shared between a loose con-
federation of staff. Decision making is flexible, based
upon a “fitness for use” in the remanufacturing environ-
ment. Quality statistics, testing documentation and prod-
uct improvement plans are not shared, planned or under-
stood by most manufacturing personnel. The pace of the
manufacturing growth is fast and furious and not well
understood.
Professional Structure
A professional structure is generally governed by plans and
rules that have been decided upon by the boss and a few
key staff members. The boss is still the central focus within
the organization. The key staff have sets of specific opera-
tions for which they are responsible, including personnel
issues and attendance, as well as business performance.
The short- and long-term goals are under the direct super-
vision of the owner/boss; however, the key staff may have
some input into the discussion of attainable goals.
The primary manufacturing skill set that drives the
business is shared amongst these few key personnel. There
are information systems that have some internal shared
databases that tend to be used, but are not fully integrated
within the functional areas throughout the company.
The staff in the functional area who will be responsible
for testing and qualifying raw materials will work closely
with the materials management/procurement staff. Their
informational reports will be understood and held closely
by that functional group. The product-quality and manu-
facturing-assurance people will be somewhat technically
alienated from the procurement folks. Sometimes this can
develop blame awareness and empire building within an
organization. The procurement-gatekeeper functions and
manufacturing-floor decisions are usually still the respon-
sibility of the boss, although he or she may seek counsel
from key staff. Documentation and product improvement
plans are mostly discussed and understood by a few key
When major growth is realized by a remanufacturer, a complex and
unstable environment may have the boss setting out many plans
but few organizational policies.
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3. www.rechargermagazine.com | March 2004 | 43
personnel. A climate of procedure documentation and
planned training cycles appears within this organizational
phase.
Mechanized Structure
The classic organization structure is the mechanized
structure. The decision-making process is now central-
ized. The boss/owner has put together the leaders of the
organization. Clear and concise roles are assigned to each
functional captain. The boss may be a captain of one
domain, but he or she relies upon the assemblage of the
staff for information and decision making.
The entire company is run according to standardized
procedures and by periodic goals and objectives. There
are probably short- and long-range plans that have been
decided upon by the boss and the board of key individual
contributors. The boss is no longer the central focus
within the organization. Key staff members are responsi-
ble for specific operations.
Business performance is now the responsibility of the
management group. The short- and long-term goals are
reward and compensation targets for the management.
The primary skill sets that drive the business are distrib-
uted throughout the management group. The information
system is shared databases that are used fully and
integrated within the functional areas throughout the
company.
The functional area that is responsible for testing and
qualifying raw materials plays a significant role in pro-
curement, sales, marketing and planning. The informa-
tional reports are distributed throughout the organiza-
tion. Blame awareness and empire building are inevitable
within this organization.
The procurement-gatekeeper functions and manufac-
turing floor decisions are usually the responsibility of the
functional manager. He may seek counsel from key staff
before hard or technical decisions are presented to the
entire management staff. Tensions can be created from
the top down in terms of decision making. Quarterly and
weekly reports are a staple for the decision-making team.
Documentation and product improvement plans are dis-
cussed with managers and key floor personnel. This
organization can be made to be extremely efficient.
Divisional Structure
The largest remanufacturers are deemed to be divisional
organizations. A large remanufacturing organization usu-
ally requires multiple specialties to provide a vertically
integrated array of products. There is much more division
amongst product classes.
Manufacturing and product development is done by
autonomous units; these units can and will behave as small
organizations in themselves. The business-unit managers
play a large role in growth and guidance, as do middle
managers. Communication now becomes the lifeblood of
this phase of organization. The individual contributors
through the middle-line management staff are responsible
for motivation and success. Information systems and their
use are critical. The cost savings and document manage-
ment are centered on planning and scheduling. Each unit
will focus on a particular market and have stated realistic
goals set forth by the top management. Pay-for-perform-
ance and bonus-compensation programs are developed.
The quality-management structure is integrated between
business units. Materials management and vendor man-
agement can be a common informational system. This
organization practices world-class techniques to claim mar-
ket share based on price, product performance and market
leadership.
Where Do We Go From Here?
The perception of what quality means to your organization
has everything to do with where your organization is
within its phase of development. I work with many very
serious manufacturing companies that look for some magic
test, process, software or machine to deliver products to a
higher-quality position. Consistently I see disappointment
in their eyes when I cannot pass on a “quality” talisman.
Quality is in the people. R
The perception of what quality means to your organization has everything to
do with where your organization is within its phase of development …
Quality is in the people.
Hibbard 2/9/04 1:30 PM Page 43